RIL gains on buzz a government panel suggests cost recovery in KG wells

Reliance Industries rose 0.88% to Rs 995.85 at 14:34 IST on BSE on buzz that a government panel recommended to the oil ministry it should allow RIL to recover cost of discoveries to the tune of $160.8 million in the KG basin gas reserve.

Meanwhile, the S&P BSE Sensex was up 327.87 points or 1.15% at 28,766.78.

On BSE, so far 5.79 lakh shares were traded in the counter as against average daily volume of 3.09 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.94% at the day's high of Rs 1,016.20 so far during the day. The stock lost as much as 0.36% at the day's low of Rs 983.55 so far during the day. The stock had hit a 52-week high of Rs 1,142.50 on 16 May 2014. The stock had hit a 52-week low of Rs 794 on 28 February 2014.

The large-cap firm has equity capital of Rs 3235.07 crore. Face value per share is Rs 10.

According to reports, a government panel recommended to the oil ministry it should allow the firm to recover cost of discoveries to the tune of $160.8 million for digging three wells in the KG basin gas reserve off the Andhra coast. The panel urged the government resolve disputes related to estimating gas reserves in the wells with the explorer and added that the oil ministry should act on raising the output in the KG D6 block, as per reports.

RIL's consolidated net profit rose 1.7% to Rs 5972 crore on 4.9% decline in net sales to Rs 109797 crore in Q2 September 2014 over Q2 September 2013.

Reliance Industries is a part of Reliance Group and is into petroleum refining and marketing, exploration & production and manufacture of petrochemicals.

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