Asian Oilfield tanks 20% as unit gets termination notice from Koral Energy

The stock locked in lower circuit of 20% at Rs 134, also its 52-week low on the BSE,

Shares of Asian Oilfield Services are locked in lower circuit of 20% at Rs 134 per share, also their 52-week low on the BSE, after the company said that its unit Asian Oilfield & Energy Services DMCC allegedly got termination notice from Koral Energy International.

“The Company's subsidiary Asian Oilfield & Energy Services DMCC (ADMCC) has received an alleged termination notice from Koral Energy International pertaining to the service contract for O&M, dated 17th February, 2017,” Asian Oilfield Services said in a regulatory filing.

The alleged termination notice is not in accordance with the terms and conditions of the service contract. ADMCC proposes to contest the alleged termination notice and take necessary action to defend its position and further to recover all monies due under the service contract, it added.

The trading volumes on the counter jumped multiple-fold with 750,000 shares changed hands till 12:16 pm; against an average 24,000 shares were traded daily in past two weeks on the BSE. There were pending sell orders for 93,993 shares on the BSE.