South West Pinnacle Exploration Ltd has secured a contract extension worth approximately ₹166.82 crore from Reliance Industries Ltd for providing Coal Bed Methane (CBM) production services in Madhya Pradesh. The contract, valid for 15 months with an option to extend by a further six months, is expected to start generating revenue from the second quarter of FY27. This development has increased the company's order book to over ₹760 crore, providing growth visibility for the next two to three years.

The contract extension follows the same terms and conditions as the previous agreement. The project is classified as a domestic transaction and does not fall under related party transactions. The company confirmed that neither the promoter group nor group companies hold any interest in the entity awarding the contract.

Operational Details

Mr. Vikas Jain, Chairman & Managing Director, stated that no additional assets are needed for the execution of this contract. Mr. Piyush Jain, Joint Managing Director, highlighted that the extension ensures continuity of operations without any loss of time due to resource mobilization. The company leverages existing machinery, equipment, and trained manpower for the project.

Contract Particulars

South West Pinnacle Exploration Ltd has signed a commitment letter to invest in the upcoming rights issue of Alara Resources Limited (ARL). The agreement, executed on July 06, 2026, outlines the company's intent to subscribe to equity shares as approved by ARL's Board on July 02, 2026. The proposed investment is capped at AUD 59769.32, covering the company's entitlement and any shortfall within the limit approved by its Board.

The investment involves fully paid ordinary shares at an issue price of A$0.032 per share. This transaction is classified as a related party transaction, as the company and its promoters jointly hold approximately 10.83% of the equity shares in ARL. The deal will be conducted on an arm's length basis and is subject to necessary approvals from ARL's shareholders and compliance with applicable regulatory frameworks in India.

Key Details of the Agreement

The following table summarizes the significant terms of the commitment letter:

Existing Relationship and Holdings

South West Pinnacle Exploration Ltd currently holds 12,500,000 shares, representing a 1.56% stake in ARL, following an earlier investment of AUD 500000. The company maintains joint ventures with ARL's wholly owned subsidiary, Alara Oman Operations Pty Limited, specifically Alara Resources LLC and Al Hadeetha Mining LLC in Oman. Additionally, Mr. Vikas Jain, Promoter, Chairman & Managing Director of South West Pinnacle, serves as a director on the board of ARL.

The commitment letter stipulates that the obligations of both parties are contingent upon ARL convening a shareholders' meeting within stipulated timelines to secure necessary approvals. Upon allocation, the subscriber is obligated to pay the subscription amount, after which ARL will register the shares and issue a holding statement to the subscriber.