BPCL denies gas find, but shares up 11%

BPCL denies gas find, but shares up 11%

By Reuters

New Delhi: India’s Bharat Petroleum Corp Ltd said on 25 September it had not found a gas field as had been reported by a local newspaper, but its shares remained up 11% having risen as much as 21% in early deals.

On 25 September, the newspaper reported that BPCL and the UK’s Premier Oil had found reserves estimated at 8-18 trillion cubic feet in the remote Cachar region in northeastern India.

“It is a completely wrong report. I have no knowledge of oil and gas in Cachar exploration block," BPCL chairman Ashok Sinha said. BPCL also sent a notice to the BSE saying that it had not found any oil or gas in the block.

On 20 September, Premier Oil CEO Simon Lockett told Reuters that a well it drilled in the region may not have commercial quantities of natural gas and that results of the drilling were still being analysed.

At 0532 GMT, BPCL shares were up 10.8% at Rs359.85, down from initial gains of 21% in a firm Mumbai market.