Reliance Industries Rises on Massive Gas Find

Shares of Reliance Industries rose over 4 per cent to hit intraday high of Rs 869.50 after the Mukesh Ambani promoted company said that it has discovered massive gas reserves at MJ-1 block in its KG-D6 basin. 

 

According to the company, gas discovery at MJ-1 in KG-D6 block may hold 1.4 trillion cubic feet of gas resources, roughly half of the reserves in the block's main gas fields.

 

Located about 2,000 meters below the producing D1-D3 field in the eastern offshore KG-D6 block, MJ-1 may hold contingent resource of between 0.988 Tcf of gas and condensate (low estimate) and 2 Tcf (high estimate), according to the firm's minority partner Niko Resources of Canada.

 

Niko cited an "independent resources evaluation report for the MJ Discovery in the D6 Block in India from Deloitte LLP" to state that the find may hold a best case estimate of 1.4 Tcf of gas and condensate.

 

RIL, which is the operator of the Krishna Godavari basin KG-D6 block with 60 per cent interest, has so far made 19 gas discoveries, of which D1&D3 were put on production in April 2009. MA oil and gas field was put on production in September 2008.

 

Niko, which had earlier this year put up for sale its stake in the KG-D6 block, got resource estimation done on its own and RIL and BP were not party to the exercise.

 

"Deloitte's best case estimate of gross unrisked contingent resources of 1.4 trillion cubic feet of equivalent relates to the Central (North), Northern and Central (South) fault blocks that were drilled by the MJ-1, MJ-A1, and MJ-A3 wells, based on an estimated areal extent of approximately 24 square kilometres, approximately twice the areal extent of the analogous MA field that is currently producing," it said.

 

Reacting to this news, shares of Reliance Industries came in high demand as the trading volumes on the counter surged. As many as 5,08,000 shares changed hands on the BSE compared to average of 3,49,000 shares traded daily in the past two weeks.

 

(With PTI inputs)