Cairn India gains after new oil discovery

The company made the announcement before market hours today, 9 April 2013.

Meanwhile, the S&P BSE Sensex was up 55.81 points or 0.3% at 18,493.59.

On BSE, 13,000 shares were traded in the counter as against average daily volume of 2.78 lakh shares in the past one quarter.

The stock hit a high of Rs 295.45 and a low of Rs 290.50 so far during the day. The stock had hit a 52-week high of Rs 365.90 on 17 September 2012. The stock had hit a 52-week low of Rs 267.90 on 28 March 2013.

The stock had underperformed the market over the past one month till 8 April 2013, sliding 6.43% compared with the Sensex's 6.33% fall. The scrip had also underperformed the market in past one quarter, declining 16.49% as against Sensex's 6.61% fall.

The large-cap company has equity capital of Rs 1910.24 crore. Face value per share is Rs 10.

Cairn India before market hours today, 9 April 2013 said it has made its latest oil discovery, the 26th discovery so far in the RJ-ON-90/1 block, following recent policy clarity by Government of India (GoI) to conduct exploration activity in development blocks. The Management Committee approved the exploration work programme for the RJON- 90/1 block on 14 February 2013, post which Cairn India, the operator of the block, commenced the drilling of its first Exploration well, Raageshwari-South-1, on 25 February 2013 located in the southern part of the block, Cairn India said in a statement.

Commenting on the development, Mr. Elango P, Member of the Board, Cairn India said, "We are delighted with the 26th discovery in the block. This reaffirms our belief that an aggressive exploration drilling programme will help harness the full potential of the Barmer Basin in Rajasthan. This is a step closer towards reserve accretion through exploration led growth".

Cairn India's consolidated net profit jumped 47.9% to Rs 3344.89 crore on 38.1% growth in net sales to Rs 4277.61 crore in Q3 December 2012 over Q3 December 2011.

Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both PSU and private buyers.

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