GREY:NKRSF - Post by User
Post by
mining_pays_my_billson Nov 19, 2014 9:24am
404 Views
Post# 23143142
This bodes well fro NKO long-term
This bodes well fro NKO long-termReliance (RIL), operator of the D6 block where NKO has a 10% stake, is applying for a 1 year extension of their development deadline for some of their other fields. How does this affect us? See article below, particularly last few paragraphs. RIL was anticipating a gas price hike for the fields in question of about 12-13$/mmbtu. Yet, even at 5.61$ they are not abandonning them, but are developping. Perhaps they believe that in the long term (1-2 yrs), over the course of the tiered gas price hikes, the price will rise such that these expensive discoveries are profitable. By the same token, if they're developping fields that require 12-13$ gas to be profitable, I figure they will continue to forge ahead with the KG-D6 production and development, and NKO can continue to ride their coatails.
https://www.financialexpress.com/article/economy/ril-seeks-1-year-extension-for-developing-cbm-blocks-in-mp/