Mercator gains as subsidiary commences oil production

The subsidiary of Mercator, Mercator Petroleum Limited has begun the oil production and dispatch from its first well, Jyoti-1 in Cambay basin. Reacting to the news, shares of the Mercator surged almost 2 per cent intraday on Monday.

In June 2018, the company began working on Jyoti-1 which is part of their EWT CB-ONN-2005/9 oil block in the Cambay basin after receiving the mining lease for a period of 20 years. The company has signed a MoU with Indian Oil Corporation for the sales of its crude oil at benchmark rates. The oil block produces light sweet crude oil. The Company aims to close FY19 at a production rate of ~5,500 barrels of oil per day. Mercator Petroleum has also announced that Jyoti-II is under production which would revamp the production in the coming months. The Company expects the reserves to increase significantly as it enters the second phase of exploration.

On Monday, the shares of the company opened at Rs. 19.20 per share against Rs. 19.30 closing price. The intraday high was Rs. 20.20 per share and intraday low was 19.20 per share on the BSE. Its 52-week high was Rs. 49 and the 52-week low was Rs. 18.30 per share on the BSE.

At 12:27 hours, the shares of Mercator Limited were trading at Rs. 19.60  up by 1.03 per cent on the BSE. The Indian benchmark indices BSE Sensex was at 36,410.85 level down by 1.17 per cent and Nifty50 was at 10,995.15 level down  by 1.33 per cent.