Great Eastern Energy Corp Ltd (GEECL) today said gas production at Raniganj coal-bed methane block has increased 18% to 0.58 million standard cubic meters per day.
Production of gas from below coal seams, called CBM, increased to 20.40 million standard cubic feet per day or 0.5776 mmscmd, from 17.3 mmscfd (0.4898 mmscmd) last month, the company said in a statement here.
GEECL is the first company in the country to produce gas from coal seams (CBM). Its main asset is a 210 square kilometer Raniganj (South) block in the Damodar Valley, 185 km from Kolkata. The block, according to the company, holds inplace reserves of 2.4 Trillion cubic feet.
"In the light of the increasing production trend and the company becoming profitable, the company may consider announcing a dividend in the coming years," GEECL said.
GEECL also has Mannargudi block, near Tiruchirapalli in Tamil Nadu. The Mannargudi block covers 667 sq km. This block has 0.98 Tcf of inplace gas reserves.
Its exploration, production, and development programme will entail drilling 300 production wells in its Raniganj (South) block and 50 core wells and 30 pilot production wells in its Mannargudi block.