Gujarat Natural Resources Limited (GNRL) has announced significant progress in its drilling campaign, marking a new phase in its oil exploration and production efforts.

Kanawara Field Development

GNRL has successfully completed its third development well, KI3, in the Kanawara field. The well encountered a promising 20-meter oil-bearing zone between depths of 1684 to 1704 meters. Despite facing a two-month delay due to heavy monsoon conditions, the company is moving forward with its production plans.

Hydraulic Fracturing and Production Timeline

To optimize production from the KI3 well, GNRL plans to carry out hydraulic fracturing. The company aims to commence commercial production from this well by the first week of October 2025, potentially boosting its oil output in the region.

Expansion of Drilling Operations

In a strategic move to accelerate its exploration and production activities, GNRL is set to operate two drilling rigs simultaneously starting October 2025:

1. One rig will continue operations in the Kanawara field, focusing on further development of this promising area.
2. A second rig will begin drilling a 3000-meter deep well in the company's wholly-owned North Kathana field, expanding GNRL's operational footprint.

Upcoming Drilling Activity

The company is not slowing down its efforts. GNRL has announced that drilling of the fourth well location in the Kanawara field is expected to commence in the first week of October 2025. This continuous drilling activity underscores the company's commitment to expanding its oil and gas production capabilities.

Management's Perspective

Shalin Shah, Managing Director of Gujarat Natural Resources Limited, stated in the company's disclosure to the BSE, "We will continue to keep you updated on the progress of this significant initiative." This statement reflects GNRL's commitment to transparency and its focus on keeping stakeholders informed about its operational developments.

Gujarat Natural Resources Limited's recent achievements and future plans demonstrate its active pursuit of growth in the oil and gas sector. The successful completion of the third well, coupled with the planned expansion of drilling operations, positions the company for potential production increases in the coming months.

Gujarat Natural Resources Limited and its subsidiary GNRL Oil & Gas Limited (GOGL) have embarked on an ambitious two-well development drilling campaign in the North Balol gas field, aiming to significantly increase gas production. The initiative, which commenced on August 10, marks a pivotal moment for the company as it seeks to enhance its natural gas output.

Drilling Progress

The first well, designated as NB10, has already made substantial progress. As of the latest update, it has reached a depth of 312.00 meters out of a planned total depth of 900.00 meters. This rapid advancement underscores the company's commitment to efficient execution of its drilling strategy.

Current and Projected Production

The North Balol field is currently producing 11,000.00 Standard Cubic Meters per Day (SCMD) of gas. However, Gujarat Natural Resources has set its sights on a dramatic increase in production capacity. Upon completion of both wells, the company anticipates a five-fold surge in gas output, projecting production to reach 60,000.00 SCMD.

Timeline and Expectations

Gujarat Natural Resources has outlined an ambitious timeline for the project. The two new development wells are expected to commence commercial production within a mere two months from the start of the drilling campaign. This swift transition from drilling to production highlights the company's focus on rapid resource monetization.

Ownership and Participation

GNRL Oil & Gas Limited, a subsidiary of Gujarat Natural Resources Limited, holds a 30.00 percent participating interest in the North Balol field. This substantial stake underscores the strategic importance of the field to the company's overall portfolio.

Corporate Disclosure

In line with regulatory requirements, Gujarat Natural Resources Limited has formally disclosed this operational update to the BSE Limited on August 18. The disclosure, signed by Director Ashok C. Shah, demonstrates the company's commitment to transparency and timely communication with its stakeholders.

The successful completion of this drilling campaign could potentially position Gujarat Natural Resources as a more significant player in the natural gas sector, with increased production capacity likely to contribute to improved financial performance in the coming quarters.