Deep Industries wins 2 CBM blocks

MD of Deep Industries , Paras Savla informs one of the two blocks is at Singrauli in Madhya Pradesh and the other block is in North Godavari that is in Andhra Pradesh.

He adds that they intend to explore about 10-12 lakh metre cube of gas per day in each of these blocks.

Excerpts from CNBC-TV18’s exclusive interview with Paras Savla:

Q: It is the CBM foray that is hogging all the limelight, give us an idea of what is it that you exactly at Deep Industries are going to be doing because you are equipment providers, but you have bid with Coal Gas Mart on one and with Adinath Exim , which is a group company for the other, will you be into the exploration business now?

A: We have basically got into the field of providing services to the oil and gas sector. For the CBM blocks, which we have already won, we intend to explore those gas exploration blocks. One of the two blocks is at Singrauli, in Madhya Pradesh and the other block is in North Godavari that is in Andhra Pradesh.

Q: Could you give us the kind of potential that these blocks have in terms of reserves in your research that you have done on these two?

A: Talking about the reserves, in Singrauli it is about 31 billion metre cube of gas, and it is about 29 billion meter cube of gas in North Godavari that is in Andhra Pradesh. We assume that this production would come up for the next 35 years and we intend to explore about 10-12 lakh metre cube of gas per day in each of these blocks.

Q: So you are saying that you will get revenue for the next 35 years, how much of it would be on an annual basis? Once production starts, how much revenue do you see coming in on an annual basis?

A: We understand that the revenues will start coming from the fourth year.