Videocon Industries has rallied 7% to Rs 195, extending its yesterday’s 4% gain, on expectation of rising valuations of its Mozambique assets after Royal Dutch Shell Plc made a 992.4 million pounds ($1.6 billion) bid to buy Mozambique-focused Cove Energy. The company currently holds 10% stake in the Mozambique block.
Meanwhile, Bharat Petroleum Corporation (BPCL) which also hold 10% stake in the said block has recently said that another well of the natural gas discovery block in offshore Mozambique has struck good quality reservoir.
"Anadarko Mocambique Area-1 Limitada, the operator of exploration block in Rovuma Basin, Area-1, offshore Mozambique has informed that the Lagosta-3 appraisal well encountered 176 net meters of natural gas pay in multiple zones," the company said in a filing to the stock exchanges.
As many as 1.67 million shares have already changed hands on the counter till early noon trades, against an average around 550,000 shares that were traded daily in past ten trading days on the NSE and BSE.