Essar Energy reports higher gas and oil reserves

Essar Energy, the FTSE 100 India-focused integrated energy company, has reported total proven and probable reserves at the Raniganj coal bed methane exploration block of 113bn cubic feet (bcf) gross, or 18.8m barrels of oil equivalent (mmboe).

Best estimate contingent resources are now 445 bcf gross, or 74.1mmboe, compared with the previous evaluation, carried out in December 2009, which showed 201bcf gross, or 34mmboe.

The latest evaluation also shows that there also remains 297bcf gross, or 49mmboe, of best estimate prospective resources of gas at Raniganj.

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Naresh Nayyar, Essar Energy's Chief Executive Officer, said: "This revised evaluation of gas resources at Raniganj underlines the potential of this block. Gas is in short supply in India, but will be an increasingly important fuel and we are well placed to capitalise on that."

Currently, the firm is making progress towards full commercial production, with peak production expected to be 3.5m scm/day.

The share price rose 10.45% to 135.3p by 15:15.

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