HOEC gains on resuming oil production at D-1 well

Hindustan Oil Exploration Company (HOEC) rallied 3.41% to Rs 143.90 after the company said that it has resumed oil production from D-1 well in its B-80 field, located in western offshore, after arresting a leak in the SCSSV control line.

Due to the said issue, the well D1 was shut down and now brought on to production after the pumping of a sealant and opening the SCSSV isolation valve on the subsea tree. Currently both the wells are on production, and the flow rate of oil and gas of both D1 and D2 wells are about 1,800 barrels of oil per day (BOPD) and about 9 million standard cubic feet per day (MMSCFPD) of gas, lesser than the capacity of the wells, the company stated in the press release.

HOEC further said that the production is being restricted due to capacity limitation of the test separator through which the fluids are flowed now, since the high-pressure separator is under repair. Work on the high-pressure separator is in progress under the supervision of Expro, who is the supplier as well the operations and maintenance (O&M) contractor. Once the high-pressure separator is online, the production from the wells will be ramped up to its intended capacity, it added.

Further details will be provided during the customary Q3 earnings call to be held during February 2023, the firm stated.

Hindustan Oil Exploration Company is engaged in the exploration and production of hydrocarbons crude oil and natural gas, which are natural resources. The company provides geological and geophysical services relating to the exploration of oil and natural gas and other oil field services. The company has a 100% subsidiary namely HOEC Bardahl India Ltd which is engaged in marketing of fuel or engine additives.

The company reported a 4.4% rise in consolidated net profit to Rs 17.71 crore on a 218.6% surge in net sales to Rs 124.58 crore in Q2 FY23 over Q2 FY22.

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