RIL advances after starting production at methane block

Reliance Industries was up 1.02% to Rs 1,414 at 9:50 IST on BSE after the company said it has commenced commercial production from its coal bed methane block in Sohagpur.

The announcement was made after market hours on Friday, 21 April 2017.

Meanwhile, the S&P BSE Sensex was up 105.76 points or 0.36% at 29,471.06.

On the BSE, 86,000 shares were traded on the counter so far as against the average daily volumes of 2.01 crore shares in the past one quarter. The stock had hit a high of Rs 1,420.95 and a low of Rs 1,407.80 so far during the day.

The stock had hit a 52-week high of Rs 1,448.50 on 6 April 2017 and a 52-week low of Rs 925.70 on 23 May 2016. It had outperformed the market over the past one month till 21 April 2017, advancing 10.76% compared with the Sensex's 0.41% fall. The scrip had also outperformed the market over the past one quarter, gaining 36.47% as against the Sensex's 8.62% rise.

The large-cap company has equity capital of Rs 3251.33 crore. Face value per share is Rs 10.

Reliance Industries (RIL) commenced commercial production from its coal bed methane (CBM) block SP(West)-CBM-2001/1 from 24 March 2017 and is currently supplying CBM for commissioning the Shahdol Phulpur Pipeline (SHPPL). The production from RIL's Sohagpur CBM fields will gradually ramp-up in the next 15-18 months making RIL among the largest unconventional natural gas producers in India.

CBM is an environmental friendly natural gas extracted from coal-bed and has become an important source of unconventional gas in many parts of the world.

Reliance Gas Pipelines (RGPL, a wholly owned subsidiary of RIL, laid a 302 kilometers Shahdol Phulpur gas pipeline that connects Sohagpur CBM fields from Shahdol to Hazira- Vijaipur-Jagdishpur (HBJ) pipeline Network of GAIL at Phulpur. With this new pipeline network these CBM gas fields are now connected with the Indian gas grid.

RIL is scheduled to announce Q4 March 2017 results today, 24 April 2017. The company's consolidated net profit rose 3.6% to Rs 7506 crore on 17.6% growth in net sales to Rs 79408 crore in Q3 December 2016 over Q3 December 2015.

Reliance Industries (RIL) is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.

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