The contract entails imparting services of CBM production by deploying new set of rig and other equipment with additional manpower and other resources in Madhya Pradesh, thus doubling the present operations there.
With this extension, the present operations will be doubled with the deployment of a new set of rigs and equipment with additional manpower.
The extended contract is worth Rs 158 crore, with additional revenue expected from Q2 FY 2025-26 after resource mobilization in the next 7 months.
The contract includes three possible six-month extensions. SWPE, with two successful RIL projects completed, has been executing Phase-1 for over 14 months. Phase-2 and its extensions will significantly increase the company's order book and provide assured business in the medium to long term.
Vikas Jain, Chairman & Managing Director, said, gTo begin with, a very happy new year 2025 to all our investors and stakeholders, and we are pleased to announce the extension of an ongoing contract from Reliance Industries (RIL) for production hole drilling for CBM with a provision of three further extensions of six months each. These will almost double the present revenue from RIL. Total contract value on which the company is presently working (15 projects across all domains on a pan-India basis serving both private and public sector clients) has gone up to Rs. 495 crore.h
Jain added, gHe went on to say that the overall order book is now at its all-time high, with record orders worth Rs. 309 crore added during the first 9 months of the current FY 2024-25 alone. He was confident of continuing the trend in times ahead and emphasised that such a healthy order book sets a clear road map for the next three years and augurs well with the company's medium- to long-term vision.h
Piyush Jain, Jt. managing director, said, gExpressed confidence of successful implementation of the extended project (phase-2) based on his present campaign and past experience and added that the coal bed methane production drilling contract extension shall start generating additional revenue for the company from the second quarter of FY 2025-26 itself.h
He further mentioned that this is for the first time in the history of SWPE that all the verticals and domains, namely drilling & exploration for coal & minerals, 2D seismic acquisition, aquifer mapping, CBM production drilling, and passive seismic tomography (PST), shall be running simultaneously.
South West Pinnacle Exploration is an integrated service provider providing end-to-end drilling & exploration of natural resources (coal, ferrous, non-ferrous, atomic minerals, and conventional & non-conventional oil & gas).
The company has reported a 56% decline in net profit to Rs 0.40 crore on a 17.6% rise in net sales to Rs 27.36 crore in Q2 FY25 over Q2 FY24.