"ONGC had drilled the first well in Jambusar in the last week of October in 2013 to exploit the natural gas trapped within the shale formations located in Cambay basin, which is estimated to have a shale gas potential of 20 TCF (trillion cubic feet)," said G C Katiyar.
Following the successful drilling of the country's first shale gas exploratory well near Jambusar about 60 km from here, Oil and Natural Gas Corporation (ONGC) has decided to drill more wells in Cambay region of Gujarat, a top company official said.
"ONGC had drilled the first well in Jambusar in the last week of October in 2013 to exploit the natural gas trapped within the shale formations located in Cambay basin, which is estimated to have a shale gas potential of 20 TCF (trillion cubic feet)," G C Katiyar, who took over as the Basin Manager of Western Onshore Basin of ONGC (headquartered in Vadodara), told PTI today.
The data from the first well near Jambusar has given ONGC more leads for further exploration that will help the company ascertain parameters in taking up commercial productions, he said.
The results of the first exploratory well will open a new chapter in shale-gas exploration in the country, Katiyar said. ONGC has been spending Rs 2,000 crore per annum on the exploration of oil and gas in Gujarat and Rajasthan, he said.
Chairman and Managing Director of ONGC Sudhir Vasudeva said, India has recoverable shale gas reserves of around 90 TCF, which can satiate India's energy demand for 26 years. Shale gas is natural gas trapped within layers of shale rock and can be utilised as cooking gas and for other commercial purposes.
ONGC estimates India's shale gas reserve in the range of 500 to 2000 trillion cubic meters. The corporation has already planned to dig 30 shale gas exploratory wells across the country at the cost of Rs 600 crore by 2014-15. These explorations are expected to be carried out in alliance with ConocoPhilips, a US-based oil company that is leader in shale gas and deep-water exploration.
Cambay is one of the basins that has been identified as potentially-bearing shale resources. But apart from the Cambay basin, the ONGC will also explore Krishna-Godavari, Cauvery and Vindhyan sedimentary basins for shale gas in the near future, officials said.
ONGC stock price
On December 19, 2014, Oil and Natural Gas Corporation closed at Rs 349.30, up Rs 4.20, or 1.22 percent. The 52-week high of the share was Rs 472.00 and the 52-week low was Rs 264.00.
The company's trailing 12-month (TTM) EPS was at Rs 26.00 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 13.43. The latest book value of the company is Rs 159.81 per share. At current value, the price-to-book value of the company is 2.19.
READ MORE ON Oil and Natural Gas Corporation (ONGC), ONGC, Cambay region of Gujarat, Western Onshore Basin, Sudhir Vasudeva
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