Antelopus says KG onshore resource base may exceed offshore

Antelopus Selan Energy Limited says its expanded KG onshore position could have a resource base larger than its offshore portfolio, based on seven DSF-IV discoveries and about nine KG fields. Management has not disclosed a quantified resource estimate, and it expects high-pressure, high-temperature KG wells to cost roughly $10 million or more each.

Why does Antelopus see KG onshore as a larger opportunity?

Antelopus sees KG onshore as a potentially larger resource opportunity because management said its resource base could exceed the offshore portfolio it has today. The view follows seven new DSF-IV discoveries, bringing the KG portfolio to about nine fields. Management named Bantumilli and Dangeru among the larger fields, while Mukkamala is the only KG field currently producing.

This is an acreage and resource assessment rather than a declared reserve estimate. Antelopus said it is among the top three acreage holders in KG onshore and expects to formulate an overall exploitation plan over the next year or so. Management said it would disclose a resource estimate only after completing its analysis and obtaining a third-party reserve assessment.

What did the DSF-IV awards add to Antelopus?

The DSF-IV awards added seven KG discoveries and several Cambay Basin assets to Antelopus. It signed Revenue Sharing Contracts, or RSCs, with the Government of India on October 22, 2026, for KG onshore and Cambay areas that management described as substantially larger than contract areas offered in earlier bid rounds.

In Cambay, Antelopus received Pasunia-1 and Pasunia-2 near Bakrol, regained Oganj in a package and added Uber near the Cambay field. Management said existing Cambay operations could enable earlier production from these discoveries. KG, by contrast, has only one producing field and needs a separate exploitation plan, despite its potentially larger resource base.

Bakrol and Karjisan are now in what management called factory mode, with multi-year drilling potential intended to generate cash flow for further development. Antelopus plans to direct more management and technical attention to KG over the next one to two years, while treating offshore as optionality rather than a central element of its current 5,000-barrel production plan.

How will Antelopus develop the KG fields?

Antelopus plans to begin KG development with one rig and a limited number of wells rather than an immediate multi-rig programme. Management said it would drill a couple of wells across the portfolio, refine its reservoir understanding and then decide whether to pursue a more aggressive campaign. The first phase may also seek opportunistic early production from existing wells.

The cautious approach reflects the expected cost gap with Cambay. Management estimated a Cambay Basin well costs about $1.5 million, compared with around $10 million or more for a KG well, while noting that full KG costing is not complete. It identified KG as a high-pressure, high-temperature basin, requiring materially higher capital deployment than Cambay drilling.

Management said that if KG performs at even 50% of Cambay's outcome, it could provide substantial production potential during the next three to four years. That statement is conditional on appraisal results and does not represent a production forecast. Antelopus expects the initial drilling to de-risk reservoirs before it commits to a larger development programme.

How does KG fit into Antelopus's production plan?

KG has a subdued contribution in Antelopus's stated plan to reach 5,000 barrels of oil and gas equivalent production by FY29. Management said the target does not rely on a major KG success and continues to treat offshore development as optionality. The nearer-term production plan is therefore based mainly on Cambay operations, especially Bakrol and Karjisan.

Antelopus reported October production of around 2,000 barrels of oil equivalent per day, or BOEPD, after Q2 volumes were broadly flat. Management attributed the quarterly result to declining Karjisan output and a longer-than-expected Bakrol completion and hydraulic-fracturing process. Bakrol averaged more than 950 barrels of oil equivalent per day in October, and management remains confident of a 2,500-BOEPD exit rate in the current fiscal year.

The two basins have different roles in the plan. Cambay has operating infrastructure and lower estimated well costs, while KG has a potentially larger resource base but only one producing field and a development programme yet to be designed. Seven Karjisan wells planned for completion in the current fiscal year are included in the 2,500-BOEPD exit target.

How will Antelopus fund KG development?

Antelopus has not committed to funding KG development solely through internal accruals. As of September 30, 2026, it had no borrowings, about Rs 100 crore in cash, bank balances and liquid investments, and shareholder equity of around Rs 780 crore. Management said the eventual funding mix will depend on the pace of KG development and its capital appetite.

Q2 FY27 revenue from operations was Rs 121.7 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 90 crore. That EBITDA included a one-off Rs 6.5 crore refund; excluding it, management said EBITDA was about Rs 83 crore, with a margin of about 69%. Management said a new KG operation may initially raise establishment costs before higher production absorbs those costs.

Antelopus has not provided capital guidance for its 3,500- or 5,000-BOEPD production stages. Management said it would provide detailed capital guidance after submitting field development plans to regulators. The outstanding variables include the resource estimate, well results, infrastructure requirements, early-production scope and the choice between internal cash, debt or a capital raise.

Conclusion

Antelopus has added seven KG discoveries that management believes could create an onshore resource base larger than its offshore portfolio. The expansion gives the business a prospective second growth hub, but the claim is not yet supported by a disclosed resource or reserve figure. Cambay remains the operating base for the current 2,500-BOEPD exit target and the stated path toward 5,000 barrels by FY29.

The next disclosures to watch are Antelopus's KG resource estimate, third-party reserve assessment and initial single-rig drilling plan. Management estimates KG wells could cost about $10 million or more each against about $1.5 million in Cambay, and has not selected a funding route. It has said future quarterly calls will update production guidance as its understanding of KG improves.