Selan starts production at Mukkamala field, KG Basin; initial flow 0.5 MMscfd, potential 6 MMscfd, gas sales commenced

Selan Exploration Technology Ltd. has announced the commencement of production from the Mukkamala Field, located within the Dangeru Contract Area in the onshore Krishna-Godavari (KG) Basin. This significant achievement marks Selan's first foray into production outside of its traditional Cambay Basin operations. The Dangeru Contract Area is one of four such areas acquired through Selan's merger with Antelopus Energy Private Limited, a merger approved by the National Company Law Tribunal in June 2025. Selan holds a full 100 per cent participating interest in this field. The initial production from the Muk-1 well was made possible by successful workover and hydraulic fracturing operations within the prolific Raghavapuram Shale reservoir.

Key operational highlights include an initial tested flow rate of approximately 0.5 million standard cubic feet per day (MMscfd), which translates to about 80 barrels of oil equivalent per day (boepd), achieved at a wellhead pressure of approximately 5000 pounds per square inch gauge (psig) with minimal choke. Selan anticipates a single well flow potential over 6 MMscfd (approximately 1000 boepd) based on current well performance. Gas sales have already commenced, with the well connected to ONGC's Pasarlapudi processing facilities via an existing ONGC flowline. End customers are receiving gas through GAIL's existing pipeline system in the onshore KG basin. Selan plans to ramp up production using the current system in the short term and develop new infrastructure for longer-term expansion, actively working to enhance gas sales and maximise resource monetisation. The Dangeru Contract Area spans roughly 140 square kilometres and includes two gas discoveries, Mukkamala and Dangeru, awarded under the Discovered Small Field Policy (DSF-III) in September 2022, with the Petroleum Mining License granted on February 6, 2025. This accomplishment underscores Selan's expanding operational capabilities and commitment to strategic growth and efficient resource development.

Incorporated in 1985, Selan Exploration Technology Ltd. is an Indian company specialising in oil and gas exploration and production. It was one of the first private sector entities to secure development rights for discovered oilfields in Gujarat, specifically Bakrol, Lohar and Karjisan, all of which have proven oil and gas reserves. Selan operates in the crude oil and natural gas segments, with its crude oil sold to refineries and natural gas supplied to local industries near its fields. The pricing for crude oil is benchmarked to global markets, while gas prices adhere to the Government of India's notified domestic gas price.

The company has a market cap of Rs 943 crore and has delivered good profit growth of 26.3 per cent CAGR over the last 5 years. The stock is up by 31 per cent from its 52-week low of Rs 474.65 per share and has given multibagger returns of 500 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.