HOEC gains after PY-1 block operations update

Hindustan Oil Exploration Company rose 2.94% to Rs 136.65 at 10:19 IST on BSE after the company said it completed drilling of two wells.

The announcement was made after market hours yesterday, 12 July 2018.

Meanwhile, the S&P BSE Sensex was up 38.82 points, or 0.11% to 36,587.23.

On the BSE, 70,000 shares were traded in the counter so far compared with average daily volumes of 78,000 shares in the past two weeks. The stock had hit a high of Rs 139 and a low of Rs 134.25 so far during the day. The stock hit a 52-week high of Rs 153.75 on 12 January 2018. The stock hit a 52-week low of Rs 66.65 on 11 August 2017.

Hindustan Oil Exploration Company (HOEC) announced the successful completion of a two well re-entry and side track drilling campaign of Mercury and Earth wells which commenced in April 2018. Based on the test results of these wells there is an increase in gas production by about 10 mmscfd from the current level of 2 mmscfd. PY-1 block is 100% HOEC owned offshore field with the facilities to handle this production without any additional operating costs.

Successful completion of the two wells opens up opportunities for further exploitation with simple, shallower and cost-effective vertical wells. HOEC is keen to pursue this new lead in future drilling campaigns after geo-technical studies based on the production performance.

PY-1 block has a fully developed infrastructure with a long-term gas sales contract with GAIL which ensures full offtake of the quantity produced, HOEC said in a statement.

P. Elango, managing director, HOEC said the company is particularly excited with the enhancement of gas production from PY-1. This reinforces firm belief of its yet-to-be recovered reserve and resource base. The firm is keen to execute similar successful offshore drilling campaigns in future and will continue its attempts to increase production to lever the fully developed infrastructure.

Net profit of Hindustan Oil Exploration Company rose 67.52% to Rs 16.45 crore on 191.47% rise in net sales to Rs 23.23 crore in Q4 March 2018 over Q4 March 2017.

Hindustan Oil Exploration Company (HOEC) is an oil and gas company.

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