High Indian gas demand and rising gas prices: Demand for energy in particular gas is on the rise in India. The Gujurat State, where the project is located, is the economic growth engine in India and is the most industrialised State with high demand for gas and the supply/demand gap is expected to widen with LNG exports expected to grow. The Indian government is looking to stimulate domestic gas production and exploration to fill this supply gap and recently approved a new pricing formula for gas prices with the new rates effective from 2014 and the price expected to move to $8/mmbtu from the current $4.2/mmbtu.
If you read Craig8 post 07:19 it does answer your question, the drill was success mate and there was mechanical problem and the well was abandoned, totally different story if and they raised enough money to go back for it again
There is oil associated with this drill but I think it was reported to be condensate which has a value similar to North Sea oil. Even more importantly, in the following extract please note the reference to the z zones which, although not being tested by this drill and therefore not being valued at this stage, have been proven to be oil and gas bearing by old conventional wells and only needs to be proven ( next drill) to be susceptible to modern fraccing techniques to bring this even larger resource into play. Don't be misled into believing that this well tagetting the x and y zones is the whole story; see below for the z zone potential. The two shallower Zones (X and Y) have combined Best Estimate (100% basis)
Discovered gross in-place volumes of 1,314.1 billion cubic feet of gas (BCF) and 1,633.1 million barrels of oil (MMbo) Unrisked gross recoverable volumes of 494.7 BCF of gas and 83.3 MMbo.
The four deeper Zones (Z, 180-200, 200-300, 300-400) have combined Best Estimate (100% basis)
Undiscovered gross in-place volumes of 12,644 BCF (12.6 trillion cubic feet) of gas and 11,592.3 MMbo.
Unrisked gross recoverable volumes of 934.8 BCF of gas and 140.4 MMbo
Oilex Ltd is an Australia-based company engaged in exploration, development and production of hydrocarbons. During the fiscal year ended June 30, 2012, the Company was primarily engaged in the exploration of oil and gas, appraisal and development of oil and gas properties, and production and sale of oil.
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