Video of KG-22 Natural Gas flare
Gujarat government-owned Gujarat State Petroleum Corporation (GSPC) is the operator and holds an 80% stake in the block, awarded for exploration to GSPC along with its partners Jubilant Enpro and Canada's GeoGlobal Resourcea (GGR) in 2003. GGR has a 5% carried interest in the discovery.
Narendra Modi, Gujarat Chief Minister, on Thursday July 17 said the Gujarat State Petroleum Corporation discovered approximately three trillion cubic feet (tcf) gas from the KG-22 well in the Deendayal Upadhyay block off the coast of Andhra Pradesh. Modi addressed the media through video conferencing to say:
- This discovery substantiates the huge reserve potential of the Deendayal block. Based on the drilling reports test results analysed by GSPC and feedback received from various independent consultants abroad, we are confident that reserves in the Krishna Godavari basin will be more than 20 Tcf."
- "The discovery of KG-22 will make it one of the highest gas generating well in the country."
- "It was a challenge for the state-run GSPC, since the gas was discovered at high pressure."
- "Earlier find of the KG-8 well, Deendayal west, was a success with a gas flow of 10 MMCF per day. Last month we have submitted the declaraton of commerciality report to the Director General of Hydro Carbon for Deendayal west."
Disclaimer: I purchased GGR for my newsletter portfolio between $0.94 and 2.25 in 2004 and I have shares purchased as low as 12¢ in my personal portfolio. I took a TON of profits when the stock was high, including twice in the $13s in late 2005, so I have huge profits in this already which may allow me to trade this more aggressively including my most recent purchase at $2.65. For my specific buy and sell targets, you need to Subscribe to Kirk's Investment Newsletter.
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