HOEC spurts 10% in 2 days

Hindustan Oil Exploration Company was locked at 5% upper circuit at Rs 33.25 at 9:24 IST on BSE, with the stock extending Friday's 5% gains triggered by the oil ministry approving the commerciality of a hydrocarbon discovery in a block in Assam.

Meanwhile, the S&P BSE Sensex was up 438.65 points or 2.28% at 19,708.71.

On BSE, 1,464 shares were traded in the counter as against average daily volume of 53,515 shares in the past two weeks.

The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 33.25 so far in the day.

Shares of Hindustan Oil Exploration Company (HOEC) have risen 10.09% in two trading sessions from Rs 30.20 on 5 September 2013, after the company during trading hours on Friday, 6 September 2013, said that the oil ministry has approved the commerciality of a hydrocarbon discovery in a block in Assam. The stock had spurted by the maximum permissible level of 5% to settle at Rs 31.70 on Friday, 6 September 2013.

HOEC said that the Ministry of Petroleum and Natural Gas (MoPNG) and Directorate General of Hydrocarbons (DGH) have approved the commerciality of 'Dirok' hydrocarbon discovery in Block AAP-ON-94/1 located in Assam-Arakan basin with the mean Gas-Initially-In-Place (GIIP) of 254 BCF. Following this approval, HOEC, as the operator of the block, is preparing the Field Development Plan for Dirok Discovery with the objective to bring the First Gas to the market in an accelerated manner, subject to timely receipt of various regulatory approvals for the development/production phase, the company said in a statement.

HOEC has 26.88% participating interest in the development and production phase of Dirok Discovery. The other consortium partners include Oil India (OIL) and Indian Oil Corporation (IOCL).

HOEC reported a net loss of Rs 18.34 crore in Q1 June 2013, as against net profit of Rs 1.48 crore in Q1 June 2012. Net sales declined 42.2% to Rs 15.50 crore in Q1 June 2013 over Q1 June 2012.

HOEC was incorporated in 1983 for taking up Exploration and Production (E&P) activities. The company has participating interest in nine oil/gas fields in India (in Cambay basin, Cauvery basin, Assam Arakan basin and Rajasthan basin), which are in varying stages of E&P life cycle i.e. exploration, development and production. HOEC has a wholly owned subsidiary, HOEC Bardahl India, engaged in marketing of high performance fuel/engine additives.

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