Hindustan Oil Exploration Company (HOEC) had hit the 5% UC yesterday the moment it opened for trading and today too, the same trend – from its close of Rs.67.25, it opened at its 5% UC of the day at Rs.70.60 where it remains locked.
Fidelity Funds yesterday in fact sold shares; it has been doing so for some time and with its sale yesterday, it has now offloaded its entire equity stake of 1.29%. Param Capital acquired 0.92% yesterday at Rs.64/share.
The stock price is up as the management during its analyst conference call on 2nd June was very optimistic about the future. This is based on expectation of a price hike in the prices of natural gas. The company also said that its total gross production of hydrocarbons will double in FY22 to 16,000 barrels of oil and oil equivalent gas per day from the current 8000 barrels.
HOEC also hopes to bring its offshore field off the Mumbai coast to production by end of FY21 where it has a 50% stake. This field is expected to give around 5000 barrels of oil and 20 million cubic feet of gas a day from this field.