Niko Resources said on Wednesday that RIL’s gas discovery MJ-1 may hold 1.4 trillion cubic feet of gas resources, roughly half of the reserves in the KG-D6 block’s main gas fields.
“Assuming a 10-year production life and recovery factor of 70 percent for gas and 50 percent for oil, we think this discovery can produce an incremental 6 mscmd (million standard cubic feet per day) of gas and 6.7 kbpd (thousand barrels per day of oil),” Morgan Stanley said in a release here.
“This could add Rs.1.5-2.6 to EPS, or which may be valued at Rs.18-32 to RIL’s share price,” it added. “We think any meaningful production from this (MJ-1) could still be 4-5 years away,” Morgan Stanley said.
Niko cited an independent resources evaluation report for the discovery — located about 2,000 metres below the producing D1-D3 field — from Deloitte LLP to say that the find may hold an estimated of 1.4 Tcf of gas and condensate. RIL stock closed on Wednesday at Rs.865.50 a share, 3.93 percent, or 32.70 points, higher than its previous close on the BSE. (IANS)