Adani Welspun discovers gas in Mumbai Offshore's Tapti-Daman Sector

Adani Welspun Exploration Ltd. (AWEL), a joint venture between the Adani Group and Welspun Enterprises Ltd., announced its first ever gas discovery in the NELP-VII block MB-OSN-2005/2. AWEL holds 100% participative interest (PI) and is the Operator of this Block. Spread across 714.6 sq.km., the block is located in the prolific gasprone Tapti-Daman Sector of Mumbai Offshore basin where production is already underway by another operator / other operators.

The pay zones and flow rates encountered have exceeded the company's initial estimates. With the information gleaned from adjoining fields/areas, this discovery is of substantial significance for both the Company and the Nation.

AWEL was awarded the block under the New Exploration Licensing Policy VII bid round. Early indications pointed to the occurrence of gas-bearing reservoirs within the sandstone reservoirs of the Mahuva and Daman formations.

The drilling of the current well in March 2021 has confirmed the presence of substantial quantities of gas and condensate in the Block. Out of the three potential zones identified during drilling, two objects tested by Drill Stem Testing (DST) flowed substantial gas and condensate to the surface. Object-I (3m), a clean sandstone reservoir, flowed 9.7 million standard cubic feet per day (mmscfd) of gas along with 378 barrels/day of condensate through a 28/64" choke at a flowing tubing head pressure (FTHP) of 2659 psi. Object-II (15m), another thick clean sandstone reservoir, flowed 9.1 mmscfd of gas along with 443 barrels/day of condensate through a 28/64" choke at a FTHP of 2566 psi.

Speaking on the discovery, Sandeep Garg, MD AWEL, said, "In addition to being value accretive for the Company, this discovery could be a significant breakthrough for our nation given India's focus to nearly triple the share of natural gas in its energy mix by the end of this decade." He added that "the Company is also an operator with 100% PI of an adjacent Discovered Small Field B-9 Cluster in this prolific gas bearing zone. The proximity of these two prospective Blocks will enable AWEL to synergise and optimize development of both the blocks."

Shares of Welspun Enterprises Ltd was last trading in BSE at Rs.118.9 as compared to the previous close of Rs. 119.75. The total number of shares traded during the day was 14827 in over 291 trades.

The stock hit an intraday high of Rs. 122.35 and intraday low of 114.6. The net turnover during the day was Rs. 1748272.

Source : Equity Bulls

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