Cairn India dips on production concerns

Cairn India is trading lower by 3% at Rs 311 on reports that oil exploration and production firm may revise its production guidance in the third quarter results announcement in January 2013 due to slower ramp-up at Bhagyam field.

“Cairn India is finding it difficult to ramp up production from its Bhagyam oilfield in Barmer in Rajasthan from 25,000 barrels per day (bpd) to 40,000 bpd due to reservoir pressure problems,” DNA report suggests.

“Production per well from the Bhagyam field is lower than our earlier estimate, which would lead to drilling of more wells to touch the output stated earlier. To drill more wells at Bhagyam, the company needs to get approval either from the management committee or file a revised field development programme,” analyst at Nirmal Bang said in its management meet update.

 

The stock opened at Rs 319 and hit a low of Rs 309 on the NSE. A combined 2.79 million shares have changed hands on the counter so far on both the exchanges.