Stealth’s corporate strategy is now focussed in taking its activities into the international marketplace. It plans to bring its experience, expertise and techniques, that it has gained from its activities in the Canadian oil and gas industry, into the international arena, in general, and more specifically into Asia; with a specific focus on India, initially.
India is the fifth largest consumer of energy in the world. The oil & gas sector, in India, plays a crucial role in meeting the Country’s energy requirements. This has necessitated the need for intensified search for new fields, evolving better methods of extraction, refining and distribution. India is one of the very few countries where exploration for oil began more than a century ago. Initially, efforts were limited to two National Oil Companies, namely Oil and Natrual Gas Corporation Limited (ONGC) & Oil India Limited (OIL). At present, with the introduction India’s New Exploration Licensing Policy (NELP), there are more than 70 E&P companies, both Indian and foreign companies.
India is also vigorously pursuing unconventional hydrocarbon resources. It has the third largest proven coal reserves and is the fourth largest coal producer in the world. It holds significant prospect for commercial recovery of CBM. The total sedimentary area of CBM exploration in India is approximately 26,000 sq.km, out of which exploration has been initiated in only 52% of the area. Thus, a large area remains to be explored.
Courtesy: Directorate General of Hydrocarbons (DGH), India
Stealth signed a binding agreement to acquire a private company that has working interests in producing oil & gas assets coupled with exploration acreages, in India. The private company has working interests in producing oil fields (for development), a gas field (for development) and in prospective exploration acreages. All the development assets are currently under production and have a significant upside, both for enhancing production and for exploration upside. The private company is the Operator in some of the development assets, which pass on to Stealth as soon as the necessary regulatory formalities have been completed and the necessary approvals from the Government of India have been received. The Joint Venture partners in these assets/acreages are renowned oil & gas companies, having large acreages/assets both in India and internationally. The entire set of Assets and the exploration acreages are under Production Sharing Contracts (PSC) with the Government of India, and are located in a producing hydrocarbon Basin, in India.
More specific to India, Stealth is looking at concentrating its efforts in the following three hydrocarbon prolific sedimentary basins: