Essar Oil today said that the verified in-place gas reserves at its Raniganj CBM

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block have more than doubled to 55 billion cubic feet.

"The independently verified proven and probable reserves and best estimate 2C contingent gas resources at Raniganj coal bed methane (CBM) exploration block in West Bengal have been significantly increased," the company said in a statement.

The total proven and probable reserves (2P) at Raniganj, evaluated as at September 1, 2011, are 113 billion cubic feet (bcf) gross, or 18.8 million barrels of oil equivalent (mmboe), while best estimate contingent resources (2C) are 445 bcf gross, or 74.1mmboe.

This compares with the previous evaluation in December 2009 which showed 201bcf gross, or 34mmboe, of 2C resources.

"Both evaluations were carried out by international consultants Netherland, Sewell & Associates, Inc. (NSAI)," it said.

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

Naresh Nayyar, Deputy Chairman-Essar Oil and CEO-Essar Energy, 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".

Current production at Raniganj is around 22,000 standard cubic metres of gas per day, reduced to minimise flaring, while test sales through a 48 kilometre pipeline to the Durgapur industrial estate are continuing.

"Progress towards full commercial production is continuing and peak production is expected to be 3.5 mmsmcd," the statement said. Raniganj is a block covering 500 sq km in which Essar Oil has a 100 per cent interest.

Overall, Essar Oil has the largest acreage of CBM blocks in India, with a total of 10 tcf of gas resources across five blocks.