Companies & Sectors
RIL encounters gas in first exploration well in 5 years

Sources said the resource found may be significantly more than RIL’s pre-drill best case gross prospective resource of 819 billion cubic feet of gas and 56 million barrels of liquids for the well

 
Reliance Industries (RIL) has encountered natural gas in the first exploration well it spud in more than five years on the flagging natural gas fields in KG-D6 block to supplement falling output with new reserves. 
 
The MJ-1 exploration well on the Dhirubhai-1 and 3 gas fields in the KG-DWN-98/3 or KG-D6 block has sniffed natural gas while drilling, sources privy to the development said. 
 
The drilling, they said, has not yet been completed and the company will decide on testing the natural gas found once the well reaches target depth by this weekend. 
 
The well is being drilled over 2 km deeper than, and directly beneath, the producing D1&D3 fields in the block. 
 
Sources said the resource found may be significantly more than RIL’s pre-drill best case gross prospective resource of 819 billion cubic feet of gas and 56 million barrels of liquids for the well. 
 
The well is targeting a Mesozoic synrift clastic reservoir, similar to the producing MA oil and gas field in the same block. 
 
RIL had drilled MJ-1 well in early March after the government permitted companies to drill exploration wells in areas where exploration period had long expired. 
 
Dhirubhai-1 and 3 (D1&D3) gas fields, the largest among the 18 gas finds on KG-D6 block, have proved to be more difficult to produce than previously predicted. RIL has drilled the probe well on the fields to study reservoir characteristic, sources said. 
 
D1&D3 reservoir has seen sharper-than-expected drop in pressure and water and sand ingress in production wells, leading to a drop in output. 
 
The fields have seen output fall from 53-54 million cubic metre per day achieved in March, 2010 to about 12 mscmd this month. Together with less than 6 mscmd output from MA oilfield in the same block, KG-D6 is producing about 17 mscmd. 
 
MJ-1 well will probe the Mesozoic synrift clastic reservoir lying below the D1-D3 (Pliocene) Mining Lease area. 
 
While RIL is the operator of KG-D6 block with 60% interest, UK's BP Plc holds 30% and Niko has the remaining 10%. 
 
Sources said RIL had more than a year back proposed to drill the MJ-1 well but permission for that came this year. 
 
The approval came with the riders that the cost of such wells will not be allowed to be recovered unless it leads to a commercial oil and/or gas discovery. 
 

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COMMENTS

Hemant

4 years ago

Come 2014,Reliance will find all the Gas,as rates will be changed by then to more then two/three times.Right now as per the agreement with Govt,they have to supply at lower rate,so they are finding all sorts of excuses.

Sensex, Nifty getting oversold: Tuesday Closing Report

If the Nifty continues to make lower lows, it may go down to the level of 5,450

 
The market pared early gains and settled in the negative for the fifth day in a row on persistent selling by foreign institutional investors. If the Nifty continues to make lower lows, it may go down to the level of 5,450. The National Stock Exchange (NSE) witnessed a volume of 56.02 crore shares and advance-decline ratio of 419:902.
 
The Indian market opened higher on supportive global cues and upgrade of ICICI Bank and Reliance Communications to ‘overweight’ by Morgan Stanley. Markets in Asia were higher in morning trades on easing of inflation in China and hopes that the Bank of Japan will continue with its growth building measures. US stocks pared early losses and ended higher on a late recovery ahead of the commencement of the earnings season.
 
Back home, the Nifty opened 26 points higher at 5,569 and the Sensex resumed trade at 18,481, a gain of 43 points over its previous close. The benchmarks were range-bound in the positive terrain for a major part of the morning session.
 
Buying support from capital goods, banking, metal and auto sectors pushed the indices to their highs at around 12.30pm. At this point the Nifty rose to 5,603 and the Sensex went up to 18,566.
 
However, the optimism was short-lived as the market soon pared its gains and edged lower on selling in heavyweights. The decline persisted in late trade as selling intensified with the benchmarks touching their lows towards the end of the trading session. The Nifty fell to 5,487 and the Sensex declined to 18,207 at their respective lows.
 
The market closed in the negative for the fifth straight day on selling by foreign institutional investors, who are concerned about the prevailing political environment in the country.
 
The Nifty finished the trading session with a loss of 48 points (0.86%) at 5,495 and the Sensex dropped 211 points (1.15%) to close at 18,226.
 
Among the broader indices, the BSE Mid-cap index dropped 1% and the BSE Small-cap index declined 0.84%.
 
BSE Auto (up 0.41%) was the only sectoral index which settled in the green. The top losers were led by BSE IT (down 2.10%); BSE TECk (down 1.88%); BSE Oil & Gas (down 1.65%); BSE PSU (down 1.57%) and BSE Fast Moving Consumer Goods (down 1.44%).
 
Six of the 30 stocks on the Sensex closed in the positive. The chief gainers were Tata Motors (up 2.26%); TCS (up 1.10%); Jindal Steel & Power (up 0.73%); NTPC (up 0.25%) and ICICI Bank (up 0.12%). The top losers were Wipro (down 12.19%); ONGC (down 2.91%); Infosys (down 2.36%); State Bank of India (down 2.30%) and GAIL India (down 2.22%).
 
The top two A Group gainers on the BSE were—Opto Circuits (up 2.46%) and Tata Motors (up 2.26%).
The top two A Group losers on the BSE were—Wipro (down 12.19%) and Motherson Sumi Systems (down 5.61%).
 
The top two B Group gainers on the BSE were—Yashraj Containeurs (up 19.98%) and Tirupati Inks (up 19.95%).
The top two B Group losers on the BSE were—Kriti Nutrients (down 19.32%) and KSE (down 19.21%).
 
Of the 50 stocks on the Nifty, 13 ended in the green. The key gainers were Cairn India (up 2.07%); Tata Motors (up 2.06%); TCS (up 1.30%); Ambuja Cement (up 0.89%) and NTPC (up 0.60%). The major losers were Reliance Infrastructure (down 3.54%); ONGC (down 3.50%); GAIL India (down 2.61%); SBI (down 2.59%) and Punjab National Bank (down 2.50%).
 
Markets across Asia closed mostly higher on easing of China’s consumer price index to 2.1% in March from 3.2 in the previous month. Speculations of fresh stimulus from the Bank of Japan also support the gains.
 
The Shanghai Composite gained 0.44%; the Hang Seng advanced 0.92%; the Jakarta Composite rose 0.28%; the KLSE Composite added 0.08%; the Nikkei 225 rose 0.15% and the Straits Times climbed 0.70%. Among the losers, the Seoul Composite declined 0.49% and the Taiwan Weighted fell 0.35%.
 
At the time of writing, the CAC 40 of France was up 0.49%; the DAX of Germany rose 0.22% and UK’s FTSE 100 was 0.40% higher. At the same time, the US stock futures were marginally higher.
 
Back home, foreign institutional investors were net sellers of equities amounting to Rs163.95 crore on Monday. On the other hand, domestic investors were net buyers of shares aggregating Rs212.72 crore.
 
Cairn India today said that it has struck fresh oil in the Barmer Block in Rajasthan. The company has made its latest oil discovery, the 26th discovery so far in the RJ-ON-90/1 block, following recent policy clarity by the Government of India to conduct exploration activity in development blocks. The stock surged 2.07% to close at Rs291.35 on the NSE.
 
Pipe maker Maharashtra Seamless said on Monday that its Board has approved Rs100 crore share buy back at a price not more than Rs300 a scrip through the open market. The shares proposed to be bought back are within 10% of the company’s paid up capital and free reserves. The stock jumped 5.27% to close at Rs225.90 on the NSE.

 

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NSE to shift 51 stocks to the trade-to-trade segment from 12th April

The scrips, which would be shifted to the trade-to-trade segment include A2Z Maintenance & Engineering Services, Bartronics India, Consolidated Construction Consortium, Khaitan Electricals, KS Oils, Triveni Engineering & Industries and Uttam Sugar Mills, among others

 
The National Stock Exchange (NSE) will move as many as 51 scrips to restricted trading category from 12th April in a move to ensure market safety.
 
The scrips, which would be shifted to the trade-to-trade segment include A2Z Maintenance & Engineering Services, Bartronics India, Consolidated Construction Consortium, Khaitan Electricals, KS Oils, Triveni Engineering & Industries and Uttam Sugar Mills, among others. 
In the trade-to-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
 
The move is part of the preventive surveillance measure to ensure the market safety and to safeguard the interest of investors, NSE said in a circular.
 
“Trading in securities (51)... will be available in Trade for Trade segment at a price band of 5% with effect from 12th April 2013 (Friday),” the exchange said.
 
Also, the exchange has advised caution while trading in these scrips.
 
“Trading members should note that the transfer of scrips for trading and settlement on a trade-to-trade basis is purely on account of market surveillance measure and it should not be construed as an adverse action against the company,” NSE said.
 
“Further, this is a temporary measure and will be periodically reviewed depending on the market conditions,” the exchange added.
 

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COMMENTS

NSriramamurty

4 years ago

KS Oil,Triveni Enginerring,etc are included in Futures & Options Category early -as thogh they are very good Companies.Now They are not allowed in Cash Segment also.Traders Felt % Clear in their Minds that Money Changes Hands to the Officials authourised for effecting such Changes in the Name of Market Survillance.When Included in F&O Share Prices go up and Fall when Shifted out.Exchanges & Sebi never reveal their findings ,Reasons for such Changes -excepting terming them on Market Surveillance.When Whole India Concentrates on TRANSPARANCY and brings out RTI,etc -SEBI & Exchanges follow Outdated Survillance Reason,Playing fire with 1000s of Crores traded/invested in Markets.SEBI & Exchanges should Display all their Reports,Reasoning & Explanation for their Actions-as they are are only Custodians of Millions of Investors/Traders and not Dictators. Naturally Investors are Vanishing due to SEBI & Exchanges's Arbitrary Actions.

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