News Stocks Asian Energy Services Discovers Oil in Gujarat's Mevad Field with 130 BOPD PotentialAsian Energy Services Discovers Oil in Gujarat's Mevad Field with 130 BOPD Potential
Asian Energy Services Limited has made a significant oil discovery in Gujarat's Mevad Field through well NM-01, drilled to 1,650 metres depth with three hydrocarbon-bearing formations. Currently producing 100 bopd from Sobhasan sand with potential for 125-130 bopd, the discovery exceeds initial estimates and will supply domestic refineries with Brent-linked pricing.
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Asian Energy Services Limited has announced a significant oil discovery in its Mevad Field operations in Gujarat, marking a major milestone for the company's exploration activities. The discovery was made in the newly drilled well NM-01 located in the Mevad Area of Mehsana district, Gujarat, as disclosed under Regulation 30 of SEBI regulations on January 31.
Well Specifications and Geological Formations
The NM-01 well was drilled to a total depth of 1,650 metres, encountering three distinct hydrocarbon-bearing sand intervals. The geological formations and current production status are detailed below:
| Formation: | Status | Production Details |
|---|---|---|
| Mandhali: | Under evaluation | Sequential assessment planned |
| Sobhasan: | Currently producing | 100 bopd in testing phase |
| Kalol: | Hydrocarbon indications | Future testing planned |
| Kalol-III: | Log and cutting analysis | Testing at appropriate stage |
The Sobhasan sand formation is currently the primary producing zone, while the Kalol-III reservoir has shown promising hydrocarbon indications based on logs and cuttings analysis.
Production Capacity and Potential
The well demonstrates strong production capabilities with significant upside potential:
| Parameter: | Current Status | Potential |
|---|---|---|
| Current Production: | 100 bopd | Testing phase |
| Expected Peak Production: | 125-130 bopd | Based on evaluation data |
| Well Depth: | 1,650 metres | Total depth |
| Location: | Mevad Area, Mehsana district | Gujarat |
According to Managing Director Kapil Garg, the results are better than initial estimates, with recoverable reserves from the field expected to increase significantly following this discovery.
Partnership Structure and Development Plans
The Mevad block operates under a Revenue Sharing Contract with defined participating interests:
| Partner: | Participating Interest |
|---|---|
| Asian Energy Services Limited: | 50% |
| Oilmax Energy Private Limited: | 10% |
| Other Partners: | 40% |
Field partners plan to drill additional wells to evaluate the extent of the oil pool and assess the reservoir's development potential. The discovery coincides with Asian Energy's ongoing merger process with Oilmax Energy Private Limited.
Commercial Strategy and Market Arrangements
The company has established clear commercial arrangements for crude oil sales from the Mevad Field. Oil produced from the well will be supplied to domestic refineries under offtake arrangements, with crude pricing linked to the Brent benchmark to ensure market-aligned realisations.
This discovery provides Asian Energy with incremental domestic production exposure and is expected to add incremental cash flow while enhancing operational visibility during the consolidation period. The project underscores the company's focus on disciplined, low-cost resource development and strengthens its position in India's upstream oil and gas sector.
Historical Stock Returns for Asian Energy Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.24% | -5.39% | +25.20% | -20.39% | +17.30% | +104.75% |
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