HPCL jumps on plans to acquire two gas fields in Australia

HPCL surged 6.02% to Rs 241.15 at 14:23 IST on BSE after the firm said that its wholly owned subsidiary has entered into a sale purchase pact with AWE, Australia to acquire stake in 2 Australian gas fields for total consideration of AUD 85 million

The announcement was made during trading hours today, 29 January 2014.

Meanwhile, the S&P BSE Sensex was up 58.92 points or 0.28% at 20,742.43.

On BSE, so far 1.70 lakh shares were traded in the counter as against average daily volume of 1.22 lakh shares in the past one quarter.

The stock hit a high of Rs 245.30 and a low of Rs 227 so far during the day. The stock had hit a 52-week high of Rs 352.90 on 28 January 2013. The stock had hit a 52-week low of Rs 158.45 on 28 August 2013.

The stock had underperformed the market over the past one month till 28 January 2014, declining 4.99% compared with the Sensex's 2.41% fall. The scrip had, however, outperformed the market in past one quarter, surging 19.18% as against Sensex's 0.55% rise.

The mid-cap state-run oil refining-cum-marketing company has equity capital of Rs 338.63 crore. Face value per share is Rs 10.

HPCL said that Prize Petroleum Company, which is a wholly owned subsidiary and upstream arm of the company has entered into a sale purchase agreement with AWE, Australia to acquire 11,25% interest in T/L1 license (includes Yolla producing field and BassGas infrastructure) and 9.75% interest in T/18P permit (includes Trefoil development field) in Australia for a total consideration of AUD 85 million. The field is operated by Origin Energy and is held by a consortium in which Origin Energy, AWE and Toyota Tsusho are the major partners, HPCL said in a statement.

HPCL said that the fields are located in shallow water in Bass basin between mainland Australia and Tasmania offshore Victoria. In addition to the field, the acquisition will also entail a stake in offshore platform, gas processing plant and a 147 Km subsea pipeline. Production from Yolla mainly comprises of Gas, LPG and condensate, HPCL said in a statement.

HPCL's net profit declined 86.3% to Rs 318.92 crore on 8.4% growth in net sales to Rs 52524.87 crore in Q2 September 2013 over Q2 September 2012. The company unveils Q3 December 2013 results on 11 February 2014.

The Government of India holds 51.11% stake in HPCL (as per the shareholding pattern as on 31 December 2013).

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