Great Eastern Energy may bid for CBM blocks

Last Updated: Tue, Aug 25, 2009 11:26 hrs

The Great Eastern Energy Corporation (GEECL) is likely to be one of the bidders for the fourth round of Coal Bed Methane (CBM) block auction.

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"We are looking to bid for CBM blocks opened in fourth round of auction by the government, currently assessment of the resources opened under auction is being done," Chief Operating Officer GEECL Prashant Modi told reporters here today.

The ten blocks offered under CBM-IV auction by the government cover an area of about 5,000 square kilometres and are spread over Assam, Jharkhand, Orissa, Madhya Pradesh, Chattishgarh, Maharasthra and Tamilnadu.

The bidding for CBM blocks ends on October 12, for which the government is at present holding roadshows globally, sources said.

Currently, GEECL produces CBM from its block in Raniganj in West Bengal, which is spread across on aggregate area of 210 square kilometres, company statement said.

"The company has completed 30 wells as on July 2009, with 23 additional wells in various stages of completion, and has commissioned one gas gathering station," Modi said.

GEECL plans to dilute 10 per cent of company equity holding through initial public offering (IPO) route in India. "We plan to raise Rs 400 crore from the market by this year end, Modi said.