Equity Alert: ONGC up; report of likely oil strike in Cauvery block
MUMBAI--12:15PM--Shares of Oil & Natural Gas Corp were up 4% at
991 rupees,
helped by a newspaper report the company is close to striking oil in
its Cauvery
basin deepwater block--CY-DWN-2001/1, dealers said.
The first well drilled in the block is expected to reach the
target depth by
the end of this month, The Economic Times said.
Norway's Rocksource ASA, which Monday signed an agreement with
ONGC to pick
up 10% stake in the deepwater block, estimates the mean unrisked
resources of
block to be around 2.9 bln barrels of oil equivalent, the report said.
Mean unrisked resources estimate prospective volume assuming that
the
drilling of an exploration well is successful.
"Until the news is confirmed, it will not be a big trigger for the
stock.
But the share price has come down a lot due to the recent market
correction and
it is a good time to buy with a long-term view," Rohit Nagraj,
analyst, Angel
Broking, said.
He has a share price target of 1,135 rupees for the stock.
So far today, 1.2 mln ONGC shares have been traded on NSE.
September futures
of the stock were at a 9-rupee premium to the spot, with 5% rise in
open
interest.
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