The Hindu Business Line : Selan Exploration hits roof

Selan Exploration Technology stock hit its all-time high at Rs 127.45 intra-day on Tuesday, but closed slightly lower with a gain of 12.67 per cent at Rs 124.5. On the BSE, 8.36 lakh shares (daily average volume in the past fortnight is 2.05 lakh shares) changed hands in hectic trading.

According to market sources, the exploration company is preparing to exploit a few more wells to raise production and to encash higher crude price. When contacted, a company official declined to add anything other than what has been officially announced by the company. Its Web site states: “Selan has a development plan for drilling of additional wells in these (a total of two – one each for oil and gas) blocks in the next 3 to 5 years.

The plan is intended to be executed in a phased manner and would involve large capital expenditures, to be funded through a combination of external borrowings and internal accruals. The proposed external borrowings shall be drawn in various stages of completion of each phase.” However, a note to the accounts for the quarter to June 30, 2007, suggested that there were specific planned expenditure on the development of hydrocarbon properties during 2007-08. Industry sources said that by 2008-09 production in a new block may start. Selan’s Rs 14.42 crore paid-up capital is backed by reserves of Rs 33.09 crore. Though the official description to the valuation of the assets is restricted to “significant”, industry sources estimate that its oil reserves is around 45 million barrel . Jayanta Mallick

More Stories on : Stock Markets | Stocks | Ear to the ground | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page