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Oil and gas explorer Selan Exploration Technology surged over 11 per cent in morning trade on Friday.
At 10 am, the stock was up 11.31 per cent or Rs 43 at Rs 423.05 on the BSE after hitting a high of Rs 427.70. According to exchange data, volume spurted by over 4.03 times today.
The stock opened at Rs 391.05 against Thursday's close of Rs 380.05.
The stock headed towards the biggest daily gain since September.
Traders attributed the surge in stock price to anticipation of production ramp-up.
Sharekhan said the company was taking steps to commercialise some of the 11 wells drilled earlier in 2014. It said management guides production volumes of 0.5-0.6 mln bbl annually in the next 2-3 yrs, up from 0.16 mln bbl in FY14
The recent slump in crude oil prices have already been discounted, traders added.
Selan Exploration was trading at 10.8x of F12M earnings compared with 24.35x for rivals.
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