Share price of Vedanta Ltd. rose 1.8 per cent in the early trading session on Thursday, as the company has notified the Management Committee, Directorate General of Hydrocarbons and Ministry of Petroleum and Natural Gas of an oil discovery in the second exploratory well H2, located in the block KG-OSN-2009/3, Krishna-Godavari Basin, East Coast of India.
Vedanta Ltd. holds 100 per cent participating interest in the block.
Against the previous close of Rs. 175.55, the share price of Vedanta Ltd opened at Rs. 177.80 and hiked 1.8 per cent to touch the days' high of Rs. 178.70. The stock has been consecutively rising for 3 days and has attained 5.71 per cent growth in the period. It also outperformed the sector by 1.26 per cent today.
At 12:10 pm, the stock quoted 1.22 per cent growth or 2.15 points up at Rs. 177.70 on BSE and Rs. 177.80 on NSE.
As per the filing, multiple reservoir zones have been encountered by the firm in the well H2 within the mesozoic sequence between the depths of 3310m to 4026m with hydrocarbon indications during drilling and downhole logging.
The zone from 3403m to 3431m was tested through a conventional well testing method called drill stem test, after which flowed oil to the surface.
The first exploration well A3-2 drilled in the block was a gas discovery.
The company also says further appraisal will be required to establish the size and commerciality of the oil discovery.
Following rising investor's participation, 3.3 lakh and 47.7 lakh shares have changed hands in BSE and NSE, respectively. Vedanta Ltd's share price moved above its 50-day simple moving average yesterday, however, was already above 5 and 20-day average.
Although the stock has given negative returns yearly and half-yearly on both the trading platforms, it has positively traded at 8 per cent and 2 per cent for the period of one month and one week, respectively.
On Wednesday , with a volume of 4.8 lakh shares traded on BSE and 84.8 lakh traded on NSE, Vedanta's stock closed at a 1.12 per cent rise of Rs. 175.55.
Vedanta's oil and gas operations comprise the assets of Cairn India, which is India's largest private sector crude oil producer. Cairn India had won the KG-OSN-2009/3 block in June 2010 during the edition of the New Exploration Licensing Policy (NELP).
Cairn Oil & Gas-the subsidiary of Vedanta Resources--contributes over 26% of India's annual production, as India's largest private sector crude oil producer.
The oil and gas vertical of Vedanta Limited contributed 25 per cent to India's domestic crude oil production in FY 2017-18. It has been operating for over 2 decades and is well positioned to reduce the country's energy import burden.
(Edited by Rupa Burman Roy)
Also Read: Share Market Live: Sensex rises over 200 points, Nifty crosses 11,500; Bank of Baroda rises 4%
Also Read: Vedanta announces oil discovery in Krishna-Godavari basin, to augment domestic crude output