Commencement of oil & gas production fuels Assam Company

Commencement of oil & gas production fuels Assam Company

Assam Company was locked at upper limit of 5% at Rs 36.85 at 13:47 IST on BSE after the company said it started oil and gas production at Amguri block in northeast India from 29 January 2008.

Meanwhile, the BSE Sensex was down 16.44 points, or 0.09%, to 18643.88.

On BSE, 1.15 lakh shares of the scrip were traded. The stock had an average daily volume of 8.34 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 36.85 and a low of Rs 36.45 so far during the day. The stock had hit a 52-week high of Rs 57.10 on 1 January 2008 and a 52-week low of Rs 13.25 on 25 May 2007.

The scrip had underperformed the market in the one month to 4 February 2008, falling 34.94% as against the Sensex's 9.80% decline. It had, however, outperformed the market in the past three months, soaring 38.19% against the Sensex's 3.82% slide.

The mid-cap oil and gas producer has an equity capital of Rs 30.98 crore. Face value per share is Rs 1.

At the current price of Rs 36.85, the scrip trades at a PE multiple of 49.79, based on Q2 September 2007 annualised EPS of Rs 0.74.

The company is currently producing 585 barrels a day of oil and 4.7 metric million cubic feet of natural gas from Amguri 10B and Amguri 11 wells. However, after removal of constraints and construction of a new gas pipeline in the current quarter, production will increase, Assam Company said

Assam Company’s net profit rose 988.5% to Rs 5.66 crore on 3.8% decline in sales to Rs 61.81 crore in Q3 December 2007 over Q3 Decemeber 2006.

Assam Company is engaged in businesses like tea plantation, oil & gas exploration and infrastructure.