Shares of Cairn India surged despite a weak market today following the announcement of its second oil discovery in the Krishna Godavari basin block.
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Cairn India said yesterday that it has made an oil discovery in the Nagayalanka-SE-1 well,in the onshore block KG-ONN-2003/1,in the Krishna-Godavari Basin on the east coast.
The stock opened on a bullish note and rallied to a high of Rs 362.85. It was later trading at Rs 358.80,up 0.53 per cent at 1124 hours on the BSE.
Similar movement was seen on the National Stock Exchange as well where the stock opened at Rs 360.30,then surged to Rs 363. It was later quoted at Rs 358.05,up 0.39 per cent on the NSE at 1123 hours.
The stock was up despite the broader market being in the negative territory. The BSE 30-scrip index,Sensex,was trading at 17,510.21,down 87.21 points at 1124 hrs.
Cairn Energy India Pty Ltd is the operator of the block with 24 per cent stake,while Cairn India holds 25 per cent.
The remaining 51 per cent is with state-owned Oil and Natural Gas Corp (ONGC).
Without giving reserves the discovery may hold,Cairn said a gross 57-meter hydrocarbon column was tested as oil bearing. It flowed 70 barrels per day of oil and 0.6 million standard cubic feet per day of gas during testing.
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