Shares of Hindustan Oil Exploration jumped nearly 5 per cent on Monday, snapping their four-day losing run after the company said it has “resumed oil production from D-1 well in its B-80 field, located in western offshore, after arresting a leak in the SCSSV control line.”
The stock surged as much as 4.74 per cent to hit a day high of Rs 145.75 on BSE. A total of 24,000 shares changed hands today, amounting to a turnover of Rs 34.62 lakh. The market capitalisation or m-cap of the company stood at Rs 1,917.53.
Considering today’s high level of Rs 145.75, the stock traded 15.95 per cent higher than its 52-week low of Rs 125.70, hit on September 28, 2022. Yet, it was down 40.55 per cent from its one-year high of Rs 245.15, touched in January this year.
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The stock has edged 0.42 per cent higher in the previous five sessions. On a year-to-date (YTD) basis, it has declined 23.37 per cent.
Hindustan Oil, in a notification to the exchanges, said, “The well D1 was shut down and now brought on to production after the pumping of a sealant and opening the SCSSV isolation valve on the subsea tree. Currently, both the wells are in production, and the flow rate of oil and gas of both D1 and D2 wells are about 1800 BOPD and about 9 MMSCFPD of gas, lesser than the capacity of the wells.”
It also mentioned that the “production is being restricted due to capacity limitation of the test separator through which the fluids are flowed now, since the high-pressure separator is under repair.”
The production from the wells would be ramped up to its intended capacity once the repair work gets completed, it added.
Block MB/OSDSF/B80/2016 is spread over 56 sq. Kms. area in western offshore. Hindustan Oil Exploration is the operator of this field with 60 per cent participating interest and 40 per cent is held by Adbhoot Estates Pvt Ltd. Under the revenue-sharing contract, the oil and gas produced from this block enjoys marketing and pricing freedom.
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Meanwhile, Indian equity benchmarks edged higher in late morning deals today despite weakness in consumer and technology stocks.