RIL doubles expectations with D4

Reliance Industries, India’s biggest gas company may be seated on yet another gold mine – it’s block D4. RIL companion Niko Resources, that possess 15 percent in the block situated on the east coast of India, has increased primary estimations of gas reserves in D4. RIL’s is the owner of the block with eighty-five percent.

Canada-based Niko Resources’ chairman and CEO Edward S Sampson informed “We think it is the twice the size of D6 and has prospectively up to an exceeding possibility of 100 TCF gas. It would change India and with 15percent it would substantially modify Niko”

The speaker of Reliance Industries said “The appraisal process is presently being undertaken and we cannot offer any comment.” But company sources say that the drilling in the block is expected to begin only by the last quarter of this financial year or early next financial year.

RIL’s estimated 40 TCF of gas in place at Krishna Godavari D6 has recoverable reserves of 11.5 TCF, the largest deep-water find in India so far. Institutional investors say, for RIL, reserve replacement post D6 exhaustion is critical, which D4 can provide. Any development on that regard can provide upside to SOTP valuation of RIL.

RIL chairman Mukesh Ambani repeatedly reiterated the potential of its oil and gas blocks on the east coast. In the company’s 36th annual general meeting in June he told his shareholders “Reliance has intensified its exploration campaign across the deepwater basin in the East Coast, with the objective of doubling the proven reserves base in the next three years.”

With this Reliance Industries will reach to an unbeatable height. The company’s growth is awe-inspiring.

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