ONGC rises 3% to hit 3 month high

NEW DELHI: Shares of ONGC rose over 3 per cent in Wednesday's trade amid reports that the oil refiner's latest discovery is estimated to hold in-place reserves of about 20 million tonnes.

The scrip closed Wednesday's session at Rs 167.55, up 0.96 per cent on BSE. The scrip had risen 3.10 per cent to hit a high of Rs 171.10 earlier in the day.

The company discovered hydrocarbon reserves west of Mumbai High at well WO 24-3 in July. ONGC tested nine zones in the well, the two sources with knowledge of the matter told Reuters.

“One zone alone yielded more than 3,000 barrels per day of oil and there are deeper zones where oil and gas both are encountered,” said one of the sources.

Mumbai High field annually produces oil and natural gas of about 9 million to 10 million tonnes of oil equivalent. “It is a large discovery going by Indian standards and is in a different play than discoveries made in the neighbouring Mumbai High fields,” the source said.