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Gujarat Natural Resources Ltd to expand oil production through subsidiary

Source : BUSINESS_STANDARD
Last Updated: Fri, Jul 05, 2013 21:15 hrs

Having sought further budget provisions, Gujarat Natural Resources Limited (GNRL) is aiming to expand oil and gas production at various fields such Kanawara, Dholasan Field, North Kathana and Allora Field through its 100 per cent subsidiary Heramec Limited.

Erstwhile Lesha Energy Resources Limited (LERL), the city-based oil and gas exploration company had earlier acquired Hyderabad-based Gorlas Oil and Gas Pvt. Ltd. (GOGPL), the 100 per cent holding company of Heramec Ltd. for Rs 15.43 crore.



What's more, through the acquisition the Ahmedabad-based company had gained access to oil and gas fields in Cambay Basin, where Bahamas-based Heramec Ltd. has 30 per cent participating interest.

According to Shalin Shah, managing director of GNRL, with additional budget provisions being made, the company expects to expand its oil and gas production at the various fields. As against the approved budget of $ 2.05 million for the FY 2012-13 for Kanawara, Heramec has completed planned activities for the year at total cost of $ 1.87 million.

"The average oil production of Kanawara has now increased from 90 barrels of oil equivalent per day (boe/day) to 350 boe/day as on date. In FY 13-14, the work program includes introduction of various advanced production enhancement technologies such as drilling of horizontal well in Kanawara field and a budget of $ 10.82 million for FY 13-14 has been provisioned.

It is expected that upon execution of planned activities like well stimulation in K-8 and drilling of one additional well would increase the production of Kanawara by another 300-500 barrels per day (bbls/day)," said Shah.

Similarly, For the FY 13-14, Heramec Limited plans to drill 3 new wells in Dholasan field and a budget of $ 12.14 million has been approved by partners and DGH for implementation of work program.

On the other hand, for North Kathana and Allora Field, the company has received budget provision of another $ 1.37 million and $ 0.85 million, respectively.

According to Shah, the provisioned budget is set to improve production from the existing fields.

It needs to be mentioned here that through the acquisition of Heramec through GOGPL, GNRL had gained interests in six oil and gas fields including Allora, Dholasan, Kanawara, North Kathana, Unawa and North Balol. Apparently, Gujarat State Petroleum Corporation Limited (GSPC) was partnering in all the six fields.

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