Good news follows good news for buoyant HOEC

Vol 20, PW 25 (07 Sep 17) Exploration & Production

More good news from Hindustan Oil Exploration Company (HOEC) whose share price received a much-needed boost following its August 28 announcement of imminent gas production from the Dirok discoveries at AAP-ON-94/1.

Managing director P. Elango tells us the company is set to receive the PML for the 16.45-sq km Kherem field in Arunachal Pradesh won with partners Prize Petroleum and original operator Oil India under the DSF round on February 15, 2017.

"Oil India is transferring the PML to us," confirms Elango. Also on the horizon, he adds, are six fresh wells at the Dirok field where HOEC has announced imminent commercial gas production from six wells.

"Six (new) appraisal and development wells are planned," says Elango, "based on positive indications from the six wells drilled and completed." On August 28, HOEC told the BSE first Dirok production would be around 10m cf/d (282,000 cm/d) "restricted by the capacity of a 4-inch pipeline" but ramped up over six months to 36m cf/d (1m cm/d) and more than 1000 b/d of condensate on "commissioning of a Modular Gas Processing Plant (MGPP)." On August 28, when HOEC announced it had been granted the Dirok PML on August 25, its share price surged by around Rs10 to Rs83.15 ($1.30) from Rs73.75 ($1.15) four days earlier. Elango said HOEC would spend the next four months amending the FDP to increase the recovery factor to 75% from 65%.

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