1. 1
Technical and Environmental Challenges for CBM Resource Development in India
Deep Industries Limited
3rd India Unconventional Gas Forum Conference (IUGF) 2013
18th January 2013

2. CBM An Overview CBM Resources across the Globe (Tcf) Introduction
Pumping methane gas from a coalbed
Trapped in the middle of coal, CBM is naturally occurring methane gas with traces of other hydrocarbons and non- hydrocarbons
The global estimate for potential CBM production is expected to be more than 7000 Tcf
The countries that are currently significant producers of CBM are Australia, Canada, US, India, China and a few western European countries
Close to 10% of the natural gas produced in US is contributed by CBM
CBM Resources across the Globe (Tcf)

3. CBM Blocks awarded till date
India CBM- Update
33 Blocks CBM Resource potential 62 TCF
Main operators are DIL, Essar, RlL, ONGC, GEECL,
RNRL, BP & Dart Energy
CBM Blocks awarded till date
State
No. of Blocks
Area (Sq.Km)
West Bengal 4
1308
Jharkhand 7
2454
Madhya Pradesh
3701
Rajasthan
3972
Chattisgarh 3
1917
Andhra Pradesh 2
1136
Maharashtra 1
503
Gujarat
790
Orissa
766
Tamil Nadu
Assam
113
Total 33
17,246
* Source: DGH

4. DEEP INDUSTRIES LIMITED: OVERVIEW
Diversified oil & gas company serving the industry in India since 1991.
Business interests:
Gas Compression
Drilling and Work over Rigs
Oil & Gas Exploration & Production
CBM Exploration & Production
Largest natural gas compression service provider in India in the private sector, with over 90% market share.
E&P portfolio includes domestic & overseas blocks.

5. DIL- Exploration & Production Assets
DIL India Operations
DIL Indonesia operations
Marginal Gas fields
Total Acreage: sq. km
Total Resource: 1.42 BCM
GV(N)-CBM-2005/III
Acreage: 386 sq. km
Resource: 29.6 BCM
VN-ONN-2010/1
Acreage: 3776 sq. km
SR-ONN-2005/I
Acreage: 789 sq. km
VN-ONN-2010/2
Acreage: 4909 sq. km
SR-CBM-2005/III
Acreage: 338 sq. km
Resource: BCM
CB-ONN-2010/3
Acreage: 534 sq. km
Total Acreage holding:
Reservoir Type
India
Indonesia
Total
CBM
724 sq. km
996 sq. km
1720 sq. km
Oil & Gas
10102 sq. km -

6. Singrauli CBM Block At a Glance
Parameter
Singrauli CBM
Block Stage
Under Appraisal Phase
Acreage
330 sq. km
Reserves / Resources
1,106 bcf (GIIP)
No. of Seams 8
Coal Seam Depth
2015 ft – 2800 ft
Coal Seam Thickness (net)
88.6 ft
Gas to Coal Content
130 – 180 (scf/ton)

7. Singrauli CBM Block Prospective Area Five Spot
Core Program: 9 coreholes
Coal thickness (Core & Log)
Gas Content, Adsorption Isotherm
Injection/ Falloff Permeability Test
SC-06
SC-05
Five Spot
SC-03
SC-08
SC-04
Production Wells: 5-Spot pilot
Production Test
Completion Effectiveness
Relative Permeability
Reserve Certification
Reservoir Simulation
Spacing & Pattern
Production Forecast
Field Production Potential
Field Development Program
* to be completed
SC-07
SC-01
SC-02

8. Water Well Mud Drilling
CBM Well Drilling
Drilling large number of wells at low cost is a big challenge in CBM.
350 M (Approx)
12 1/4” hole X 9 5/8” casing
8 ½” hole X 7” casing
Water Well Mud Drilling
Air Drilling
850 M (Approx)
The innovative combination drilling of surface section using small rigs and Coal section to the target depth drilled using Air Drilling rigs resulted in reduction of drilling time and cost up to 30-35%
Benefit of using Air as drilling fluid
Minimum formation damage
Faster penetration rates, longer bit life and fewer trips
Damage
Zone Around Wellbore
Air Drilled Well
Open Cleats Around Wellbore
Mud Drilled Well

9. Dewatering the CBM Wells
CBM Well Production Challenges
Dewatering time - Optimum speed of pumps need to be maintained to achieve desired dewatering
Sand flow back and workovers- Sand flow back and frequent pump repairs during the initial phase requires workover rig all times
Produced Water Quality
CBM Projects in India generally have good quality of water produced from the CBM wells which requires no or very little water treatment before disposal. But disposal of large quantity of water is a challenge.
Relative Permeability 1
0.8
0.6
0.4
0.2
krg
krw 1
Saturation
Well STW # 3

10. Typical Coalbed Methane Well Production Profile
1,000
Peaks
Flattens Somewhat
Decline Depends on Well Spacing
100
Gas 10
Water 1 5 15 20
TIME, years
Production Rate ( Water - BBL/ Day), Gas (MSCFD)

11. Multiple Seam Completion

12. Surface Facility and Compression of Gas

13. Large Land Sites for drilling CBM Wells
1 vertical well and 4 directional wells at 90 Deg phasing with horizontal reach of about m drilled from a pad.
Many benefits of this approach:
Land Requirement reduction up to 60%
Land cost savings and Civil work savings
Savings on ILMs of drilling rigs, logging trucks, cementing units, HF Units , completion & workover rigs
Savings on in-filed pipelines, instrumentation and surface facilities
Logistics, security, etc.
Directional Wells from a single well site
500 m

14. Logistical, Environmental & Social Challenges
Logistical: Very less logistic support available as generally all CBM assets occur in the remote areas
CBM requires drilling of very large number of wells and setting up required surface facilities
Extensive logistics support need to be created
Environmental: As CBM reservoirs are low pressure operations, environment impact is very less
Need amendment in the existing rule and regulations
Social: Effect on local community and their resistance
Need the follow good and effective CSR plan

15. CBM Evacuation Challenges
Almost all the CBM blocks in India are located in frontier areas
No CBM gas transportation infrastructure developed

16. Conclusion
Coalbed methane is a technology play that requires reservoir understanding and appropriate technology for all phases of prospect evaluation and field development.
Drilling, completing and producing of large no of wells at low cost using innovative techniques always remains a challenge.
CBM Reservoirs are generally water saturated & require dewatering and gas production takes time to commence.

17. Thanks