Gujarat Natural Resources gains on new oil discovery

Gujarat Natural Resources advanced 3.7% to Rs 198.80 at 14:05 IST on BSE after the company's subsidiary intimated government about new oil discovery in Mehsana, Gujarat

The announcement was made during trading hours today, 22 September 2014.

Meanwhile, the BSE Sensex was up 57.75 points, or 0.21%, to 27,148.17

On BSE, so far 6,771 shares were traded in the counter, compared with an average volume of 11,239 shares in the past one quarter.

The stock hit a high of Rs 199.70 and a low of Rs 192 so far during the day. The stock hit a record high of Rs 204 on 13 August 2014. The stock hit a 52-week low of Rs 68 on 14 November 2013.

The stock had outperformed the market over the past one month till 19 September 2014, rising 4.53% compared with the Sensex's 2.53% rise. The scrip also outperformed the market in past one quarter, gaining 16.39% as against the Sensex's 7.49% rise.

The small-cap company has an equity capital of Rs 38.75 crore. Face value per share is Rs 10.

Gujarat Natural Resources (GNRL) said that the company's wholly owned subsidiary GNRL Oil & Gas (formerly Heramec) has intimated Government of India by letter dated 12 September 2014 about new oil discovery in Mehsana formation in newly drilled well ND#1A in Dholasan field. Presently, the well is under production testing since last 35 days to determine whether the discovery is of potential commercial interest, GNRL said.

GNRL Oil & Gas holds 30% participating interest and is the operator for Dholasan field where two new wells ND#1A and SD#1A have been drilled. Gujarat State Petroleum Corporation (GSPC) holds balance 70% participating interest in this field.

On a consolidated basis, GNRL net profit rose 56.6% to Rs 1.30 crore on 109.2% increase in total income to Rs 5.94 crore in Q1 June 2014 over Q1 June 2013.

GNRL Oil & Gas is a 100% subsidiary of GNRL. GNRL Oil & Gas Limited holds 30% participating interest in six oil & gas blocks and is operator for four of these blocks.

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