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Deep Industries may divest stake in Singrauli block

Tuesday, 30 Oct 2012
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Deep Industries (DIL) is likely to offload its participatory stake in Singrauli coal bed methane (CBM) block.

The company is likely to divest its 50 per cent in the CBM block. The company holds 90 per cent participatory interest in the exploratory block. The company along with its US based  Coal Gas Mart  had bagged two  blocks — Singrauli in Madhya Pradesh and Godavari Valley (North) in Andhra Pradesh —  during the third bidding round in 2006. Coal Gas Mart is operator in both the blocks. The two partners have drilled nine core holes and five production wells in the Singrauli block in the first phase of the minimum work programme. The wells are still in de-watering phase and yet to start producing gas. Work is on to certify the explored reserve.

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