Hindustan Oil Exploration Company Limited (HOEC) has reported a mixed bag of results for the first quarter, with increased production volumes but lower revenue compared to the previous year. The company's strategic moves and operational highlights paint a picture of growth and challenges in the oil and gas sector.

Production Growth

HOEC witnessed a significant increase in its gross production, which rose to 6,369 barrels of oil equivalent per day (BOEPD) in Q1, up from 5,458 BOEPD in the previous quarter. Net production also saw an uptick, reaching 2,777 BOEPD compared to 2,665 BOEPD in the previous quarter.

Financial Performance

Despite the production growth, the company's consolidated revenue from operations decreased to ₹78.65 crores, down from ₹136.15 crores in the same quarter of the previous year. However, net profit showed a positive trend, increasing to ₹43.87 crores from ₹41.92 crores year-over-year. This profit surge was notably boosted by exceptional items worth ₹32.52 crores.

Operational Highlights

B-80 Block

• HOEC now holds a 100% participating interest in the B-80 block, up from 60% previously.
• Production was disrupted in mid-June due to monsoon conditions, with operations resuming in August.
• The company plans to conduct workover of the D1 well and drill new wells to improve production.

Dirok Field

• Average production stood at 20.22 mmscfd of gas and 364 bpd of condensate.
• Gas prices averaged $7.56/mmbtu, down from $8.45/mmbtu in the previous quarter.

Kharsang Field

• Completed drilling of four wells, with three already hooked up for production.
• The new wells have enhanced oil production by 350 barrels per day.

B-15 Block

• HOEC signed a Revenue Sharing Contract for the B-15 block with 100% participating interest.
• Development plans are underway for drilling 4 wells in this block.

Strategic Developments

The company is focusing on rapid development of discovered resources and has a strong presence in key petroleum provinces across India. HOEC is leveraging its offshore operating edge and captive service assets to seize growth opportunities in both offshore and onshore sectors.

Future Outlook

HOEC is planning several initiatives to boost production and explore new opportunities:

• Drilling additional development wells in the Dirok field.
• Redevelopment of the PY-1 field with plans to drill new wells.
• Continuing the 18-well drilling program in Kharsang.
• Exploring deeper prospects in various blocks.

The company's strategy aligns with its goal to create long-term stakeholder value while growing responsibly, with a focus on stakeholders, community, and the environment.

As Hindustan Oil Exploration navigates through the challenges and opportunities in the oil and gas sector, its increased production and strategic asset acquisitions position it for potential growth, despite the current revenue headwinds.

Hindustan Oil Exploration Company Limited (HOEC) has announced the successful resumption of production at its offshore Block B-80 following the re-mooring of its Floating Storage and Offloading (FSO) vessel. This development marks a significant milestone in the company's operations, ensuring continuity of production from the block.

Production Restart and Well Stabilization

According to the company's latest update, production has recommenced from both wells D1 and D2 at Block B-80. HOEC stated that the wells are currently undergoing a stabilization process, indicating a careful approach to ramping up production to optimal levels.

Operational Continuity

This recent development follows an earlier update provided by the company on June 27, which had indicated ongoing operations at the offshore block. The successful re-mooring of the FSO vessel and the subsequent restart of production demonstrate HOEC's commitment to maintaining operational efficiency and addressing technical challenges promptly.

Strategic Importance

Block B-80 is a crucial asset for Hindustan Oil Exploration Company, and the resumption of production is likely to have a positive impact on the company's overall output and financial performance. The ability to quickly resolve the FSO re-mooring issue and restart production showcases the company's technical capabilities and operational readiness.

Investor Communication

In line with regulatory requirements, HOEC has been transparent in its communications with stakeholders. The company submitted the information to the National Stock Exchange of India Ltd. and BSE Limited on August 16, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The timely updates and successful resolution of operational challenges at Block B-80 reflect Hindustan Oil Exploration Company's commitment to maintaining investor confidence and ensuring smooth operations in its key production assets.