Assam Company discovers new oil reservoirs in Amguri 11 well

Assam Company Ltd has announced that the Company and Canoro Resources Ltd (its Canada-based operating partner) have discovered two new reservoirs of oil and gas at Amguri 11 well in the Assam / Arakan basin of northeast India. Both these reservoirs are believed to have over 1200 boe (barrels of oil equivalent) per day. Amguri 11 thus Tests in aggregate at Over 3,100 Boe/d.

It will be recalled that earlier this year the Company had reported discovery of 1000 boe/day in Amguri 10 B well in Amguri block. With the new discoveries, the total oil and gas potential stands at nearly 4,100 boe/day.

The Company is also planning the Amguri 12 location to test what is believed to be a structurally higher position in all reservoirs approximately 1200 metre to the southwest of Amguri 11.

Commenting on the new find, Mr. Abhay Chawdhry, Director Finance & CFO of the Company said: "We are very happy to achieve such potential from the 2 wells. It has given an indication to the potential which this block has. The Successful completion of tests at 11 happens to be the most successful result till date."

Based on the above results initial development plan for the Amguri field is being prepared. It is proposed to have 8 more wells in the first phase of plan. Amguri 12 will be the next well to be drilled which is 1,200 meters southwest of Amguri 11.

The stock closed the day at Rs.27.65, up by Rs.1.30 or 4.93%. The stock hit an intraday high of Rs.27.65 and low of Rs.27.25.

The total traded quantity was 428956 compared to 2 week average of 317365.

Source : Equity Bulls

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