ONGC: Discovery benefit
Shares of ONGC gained 5% in Monday’s trade after the overseas investment arm ONGC Videsh (OVL) made a significant oil discovery in an onshore block in Colombia.
In a BSE filing, the company said that OVL struck oil while drilling an appraisal well ‘Indico-2’ in CPO-5 block in Llanos Basin of Colombia. OVL is the operator in the block with 70% stake. Geopark, an independent oil and gas company focussed in Latin America, has the remaining 30% interest.
The well ‘Indico-2’ encountered a net pay of 147 feet which during initial testing produced oil of 35.2 degrees API in commercial quantity at the rate of 6,300 barrels per day.
Currently, the well is flowing under short term testing with multi bean study for further evaluation.
The company now plans to drill more wells to explore the other plays in the block in the immediate future. OVL is also undertaking additional 3D seismic data to map more drillable prospects in the other sectors of the block.
OVL has a stake in 7 exploratory blocks in Colombia. These are in addition to two producing blocks with 50% in JV company, Mansarovar Energy Colombia Ltd (MECL).
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