ONGC rose 2.91% to Rs 282.70 at 11:34 IST on BSE on a media report that the company has discovered rich reserves of oil in one of its blocks in the Krishna-Godavari basin off the Andhra Pradesh coast.
Meanwhile, the BSE Sensex was up 16.25 points, or 0.08%, to 20,563.87.
On BSE, 1.67 lakh shares were traded in the counter compared with average volume of 3.99 lakh shares in the past one quarter.
The stock hit a high of Rs 283.70 and a low of Rs 276.50 so far during the day. The stock hit a 52-week high of Rs 354.10 on 18 January 2013. The stock hit a 52-week low of Rs 234.40 on 28 August 2013.
The stock had underperformed the market over the past one month till 15 October 2013, sliding 2.85% compared with the Sensex's 4.13% rise. The scrip had also underperformed the market in past one quarter, sliding 7.13% as against Sensex's 2.56% rise.
The large-cap company has an equity capital of Rs 4277.74 crore. Face value per share is Rs 5.
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According to the report, one of ONGC's blocks in the Krishna-Godavari (KG) basin off the Andhra Pradesh coast has found reserves four times the previous estimate, at 100 million tonnes (mt). The company has stumbled upon rich in-place reserves of oil in block KG-DWN-98/2, earlier believed to hold predominantly gas.
Confirming the find of oil reserves to the tune of 100 mt (700 million barrels) in the block, ONGC's director (exploration) Narendra Verma was quoted by the media as saying that oil was struck in three out of six appraisal wells drilled in the block. With two more appraisal wells remaining to be drilled, a further upside to oil reserves is possible and the estimate is subject to (upward) revision, Verma said.
As the recovery factor for oil ranges between 25% and 30%, if the current oil estimates hold ONGC might be able to recover around 30 mt or around 200 million barrels of oil from the block, report suggested. "We are now planning to set up a floating production, storage and offloading unit to store the oil as well," Verma added.
Meanwhile, ONGC and Finland's Chempolis on Tuesday, 15 October 2013, signed an initial pact to build a refinery in India using biomass as a feedstock. Further to the first biorefinery, Chempolis and ONGC are targeting at larger production of sustainable biofuels in India, which would reduce India's dependence on imported petroleum, Chempolis said in a statement. Chempolis is a Finland based biorefining technology corporation.
ONGC's net profit fell 33.9% to Rs 4015.98 crore on 4.3% decline in net sales to Rs 19218.31 crore in Q1 June 2013 over Q1 June 2012.
The GoI holds 69.23% stake in ONGC (as per the shareholding pattern as on 30 September 2013).
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