Videocon Industries jumps as its arm discovers hydrocarbons in Sergipe-Alagoas Basin

Videocon Industries is currently trading at Rs. 175.40, up by 2.25 points or 1.30% from its previous closing of Rs. 173.15 on the BSE.

The scrip opened at Rs. 174.50 and has touched a high and low of Rs. 177.85 and Rs. 173.00 respectively. So far 5,534 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 196.00 on 25-Jan-2012 and a 52 week low of Rs. 161.10 on 27-Jul-2012.

Last one week high and low of the scrip stood at Rs. 179.75 and Rs. 171.95 respectively. The current market cap of the company is Rs. 6,492 crore.

The promoters holding in the company stood at 64.87% while Institutions and Non-Institutions held 12.74% and 13.75% respectively.

Videocon Industries’ step down subsidiary has made discovery of hydrocarbons. Petroleo Brasileiro SA (Petrobras), the operator of the BM-SEAL-11 Concession has discovered the existence of light hydrocarbonsin the concession BM-SEAL-11, in ultradeep waters of the Sergipe-Alagoas basin offshore.

The discovery was made during drilling of well 1-BRSA-1083-SES (1-SES-167), informally known as ‘Farfan’, situated in a water depth of 2720 m, located 109 km from the city of Aracaju. The Farfan well is about 21 km southeast to the Barra Exploration Well 1-SES-158 where hydrocarbons discovery was  reported  in September 2011, which showed the first significant gas accumulations in deep waters of the Sergipe Basin - Alagoas in  the same Block.

Further in the Appraisal Barra1 Well 3-SES-165 drilling completed in August 2012, the targeted objectives were achieved resulting in delimitation of the accumulation, featuring in the new discovery area with extension of the sandstone reservoir continuity to the southeast carrying oil and about 10km northwest of Farfan Well.

The discovery was confirmed by Farfan evidence of oil found at the depth of 5582m during well drilling, analysis of electric logs and fluid samples recovered. A hydrocarbons column of about 44 m gross and 40 m net which is formed by porous sandstone carriers of light hydrocarbons as tested. Petrobras further stated that further drilling will continue in the well to a target depth of 6,000 m, seeking other deeper objectives and conduct analyzes of rock and fluid obtained in this well bore, with the aim of presenting the Discovery Assessment Plan to the National Petroleum Agency, Natural Gas and Biofuels (ANP).

Petrobras holds 60% participating interest in the Concession and IBV Brasil holds the remaining 40% Participating Interest in the Concession. IBV Brasil is a Brazilian joint venture company equally held by Videocon Energy Brazil, a wholly owned overseas subsidiary of Videocon, and BPRL Ventures N.V., a wholly owned subsidiary of Bharat Petroleum Corporation, a Government of India majority held company. The consortium will carry on operations in the area to further confirm the extent of the new discovery and characterize reservoir conditions encountered.