Shares of Oil and Natural Gas Corporation (ONGC) gained nearly 5% in early trade on Monday after ONGC Videsh Ltd made a “significant” oil discovery in an onshore block in Colombia. ONGC Videsh Ltd, the overseas investment arm of state-owned ONGC, has made a “significant” oil discovery in an onshore block in Colombia. OVL struck oil while drilling an appraisal well ‘Indico-2’ in CPO-5 block in Llanos Basin of Colombia, the company said in a statement on Friday. The stock jumped 4.61% to ₹94 on both BSE and NSE.
ONGC’s standalone net profit of ₹2,877 crore includes the impact of an exceptional item worth about ₹1,240 crore pertaining to impairment loss. Pre-tax earnings before exceptional items stood at ₹5,228 crore, driven by higher-than-expected other income and lower interest expenses and depreciation costs.
For Q2, ONGC’s consolidated reported net profit came in at ₹5,800 crore. Shares of Oil and Natural Gas Corporation (ONGC) gained nearly 5% in early trade on Monday after ONGC Videsh Ltd made a “significant” oil discovery in an onshore block in Colombia. ONGC Videsh Ltd, the overseas investment arm of state-owned ONGC, has made a “significant” oil discovery in an onshore block in Colombia. OVL struck oil while drilling an appraisal well ‘Indico-2’ in CPO-5 block in Llanos Basin of Colombia, the company said in a statement on Friday.
OVL is the operator in the block with 70% stake. Geopark Ltd, an independent oil and gas company focussed in Latin America, has the remaining 30 per cent 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.