Traces of New Oil Reserve Found in Gujarat, ONGC Shares Jump
On reports that the Oil & Natural Gas Corporation has discovered traces of a new and previously untouched oil reserve, the company's shares today gained 1.21% on the Bombay Stock Exchange and hit a new high if Rs. 1182.30 per share. The new discovery will, as per the company's claims, increase its production by nearly 20%.
After hitting an all-time high of Rs. 1189 the ONGC stock finally settled at Rs. 1175.20 during the day. On 14 October, the stock value had hit an yearly high of Rs. 1273.50, and an yearly low was recorded when the company's per share price fell to Rs. 614.20 on 27 January, 2009.
The new traces have been discovered at North Kadi in the Mehsana area, and will reportedly produce a minimum of 1 million metric tonnes of oil per every year, which equates to about 20,000 barrels a day. To make the most of it, about 500 wells will have to be drilled in the area, with an estimated investment of nearly Rs. 500 crores. This could be the largest onshore oil find for ONGC in as many as 10 years.
The discovery of oil reserves in Gujarat has come after ONGC discovered gas which contains up-to 96.3% methane on 28 August this year.
