Videocon Industries ascends on announcing major appraisal success in Mozambique

Videocon Industries is currently trading at Rs. 170.40, up by 4.30 points or 2.59% from its previous closing of Rs 166.10 on the BSE.

The scrip opened at Rs 165.00 and has touched a high and low of Rs 170.55 and Rs 165.00 respectively. So far 24000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 234.90 on 02-Dec-2010 and a 52 week low of Rs 162.00 on 25-Nov-2011.

Last one week high and low of the scrip stood at Rs 172.90 and Rs 162.00 respectively. The current market cap of the company is Rs 6032 crore.

The promoters holding in the company stood at 68.32% while Institutions and Non-Institutions held 13.00% and 13.84% respectively.

Videocon Hydrocarbon Holdings (VHHL), a wholly owned subsidiary of Videocon Industries has informed that the well operator-Anadarko Petroleum Corporation, USA (Anadarko), has reported that Barquentine-3 appraisal well has encountered more than 662 net feet (202 net meters) of natural gas pay in two high-quality Oligocene-aged fan systems. This discovery significantly expands the company’s estimated recoverable resource range to 15 to 30+ trillion cubic feet (Tcf) of natural gas, with an estimated 30 to 50+ Tcf of natural gas in place. Barquentine-3 is the 6th successful well in the complex that includes the Windjammer, Lagosta, Barquentine and Camarao discoveries.

Anadarko, the operator of the partnership is in the process of mobilizing the Deepwater Millennium drillship to accelerate its activity in the Offshore Area 1 and also has recently signed a 4 year contract extension that will keep the Belford Dolphin drillship working in the basin as part of partnership's ongoing program.

The Barquentine-3 appraisal well was drilled to a total depth of approximately 13400 feet (4084 meters) in water depths of approximately 5170 feet (1575 meters). The well is located approximately 2.75 miles (4.4 kilometres) of southeast of the Barquentine discovery well and approximately 1.8 miles (2.9 kilometres) south of the Barquentine-2 appraisal well. The partnership will preserve Barquentine-3 for use as a monitor well during its upcoming testing program. The drillship will next move to top set the Barquentine-4 appraisal well.

Videocon Mozambique Rovurna 1, an overseas subsidiary of VHHL holds 10% participating interest (PI) in the block. Anadarko Petroleum Mozambique Area 1 Lda, an affiliate of Anadarko is the operator of the 2.6-million-acre (approx. 10,500 square kilometer) block with a PI of 36.5%. Other partners in the area include Mitsui E&P Mozambique Area 1 (20 percent), BPRL Ventures Mozambique B,V. (10 percent), and Cove Energy Mozambique Rovuma Offshore (8.5 percent), Empresa Nacional de Hidrocarbonetos, E.P. a National Oil company of Mozambique, holds the remaining 15% interest and is carried through the exploration phase.