A 100 billion dollars! That's the valuation CM Narendra Modi declared on Thursday for the natural gas find by Gujarat State Petroleum Corporation (GSPC) in Krishna-Godavari basin. Modi said the valuation was based on the assessment of top experts in the field.

Modi said GSPC would now be able to fulfil energy requirements of Gujarat for a long time to come. Modi and his ministers flew on Thursday to the KG-22 well near Kakinada, which has created a lot of excitement as its estimated gas reserve of three trillion cubic feet (TCF) is said to be the highest ever from any single well in India.

Modi told reporters that the estimate of gas find would be "much higher than 20 TCF which was estimated earlier". In value terms, the total gas in the GSPC's Deendayal block, which is under exploration right now, would be to the tune of Rs 4 lakh crore, or $100 billion.

The value is based on the price at which ONGC and Reliance sell gas in India, $4.5 metric million British thermal unit (MMBTU), the accepted unit for calculating the price of natural gas. However, if one were to calculate it on the basis on the current international rate, $18 dollars per MMBTU, it would be $300 billion.

So far, GSPC has drilled 10 wells. Of these, gas was found in six wells. Three wells were found to be dry. The result of one well is still expected. The corporation plans to drill four more wells. The director general, hydrocarbons (DGH) has so far given estimate for only one well, KG-8, which it put at 1.8 TCF.

Asked whether GSPC would go public by coming up with an IPO, Modi said, "The GSPC is financially strong. It doesn't need any outside help. It is a profit-making organisation."