Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a leader in the unconventional hydrocarbon space, today announced its Q1FY24 results with a revenue of Rs 190 crores, EBITDA of Rs 150 crores and a net profit of Rs 81 crore.
The PAT for the quarter increased by 12% YoY backed by improvement in sales volume. However quarterly Revenue and EBIDTA was lower by ~14% YoY due to softenning of crude oil prices by 24% which was cushioned by increase in sales volume by 8.5%. In the first quarter of FY24, the company has reported its highest quarterly sales volume of 2.18BCF, growing 8.5% compared to the same quarter last year. The company’s EBIDTA margins saw an improvement of ~380 basis points, reaching 79.4%, due to constant cost optimization and reduced internal consumption..
Post the completion of the Urja Ganga Pipeline in June 2021, EOGEPL’s Raniganj gas project is now seamlessly connected to the national grid, granting it unrestricted access to the market and unlocking its growth potential.
Commenting on the performance, Mr. Pankaj Kalra, Chief Executive Officer, EOGEPL, said, “Since the commissioning of the Urja Ganga Pipeline, we had a single vision of unlocking the full potential of the block, and the team has consistently delivered strong operating performance sequentially. EOGEPL is right on track to create India’s largest unconventional gas platform, contributing to India’s vision of becoming a Gas-Based Economy by the next decade. The company continues to set new benchmarks within the industry, growing its reserve base, bringing in new technologies, enhancing gas production and optimizing cost.”
EOGEPL delivered a strong operational performance by more than tripling its gas production to over 2.5BCF after the commissioning of Urja Ganga Pipeline with availability of 100% gas offtake further buoyed by continued tail winds in global gas prices.
EOGEPL is currently operating ~350 wells in the block and has adopted a systematic approach of well revival through adaptation of world class technology and stimulation techniques including re-fracs, microbial treatment and well automation to enhance gas production from the existing wells.
The company has roped in globally renowned service providers and technical consultants to roll out a phased growth program to achieve these objectives. The program includes drilling new directional and horizontal wells and also expedite the development of the CBM Area within the Raniganj block.
The company also partnered with Sensia for digitalisation of oil and gas field operations to enhance operational efficiencies. The collaboration aims to unify measurement systems, optimise decision-making and enable remote control of critical parameters across EOGEPL’s wells, facilities and customer interface.
EOGEPL continues its robust momentum to maintain a leadership position in the unconventional space with a clear road map to double its CBM reserve base and increase production from the block to over 3 MMSCMD in the coming years.