Stock Under Rs 200: This Exploration Company Bags Rs 158 Crore Contract from Reliance Industries!
Major Contract Secured: Exploration Company Set to Double Operations with Rs 158 Crore Order from Reliance
South West Pinnacle Exploration Limited (SWPE) has been awarded an extension of its Coal Bed Methane (CBM) production drilling contract by Reliance Industries Limited (RIL). The contract, valued at over Rs 158 crores, involves drilling operations in Madhya Pradesh. This development will double SWPE’s current operations with the addition of rigs, equipment, and manpower.
Significant Revenue Boost and Future Prospects
This extension builds upon SWPE’s successful completion of Phase-1 of the project, which has been ongoing for over 14 months. With the provision for three more six-month extensions, the contract is expected to provide long-term revenue growth. SWPE’s total ongoing contract value across 15 projects has now reached Rs 495 crores, with Rs 309 crores worth of orders added in the first nine months of FY 2024-25.
CBM Production and Industry Expertise
SWPE specializes in CBM production, a niche segment in non-conventional energy sources. The company’s expertise and infrastructure position it as a leader in this domain. Mr. Vikas Jain, Chairman and Managing Director, highlighted the strategic importance of this contract and its contribution to achieving SWPE’s medium to long-term goals.
Positive Stock Performance
On Wednesday at 10:15 AM, SWPE’s stock was trading at Rs 157.54, up by 4.85 per cent. Over the past week, the stock has delivered a return of 7.43 per cent, while in the last month, it has surged by 21.76 per cent. This strong performance reflects growing investor confidence driven by the company’s recent achievements.
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Expansion Across Business Verticals
For the first time, all SWPE’s verticals, including CBM production, seismic surveys, aquifer mapping, and mineral drilling, are operating simultaneously. Joint Managing Director Mr. Piyush Jain expressed confidence in delivering the extended project by Q2 FY 2025-26, reinforcing the company’s strong operational capabilities.
Strong Infrastructure and Client Base
SWPE’s state-of-the-art infrastructure includes 36 advanced drilling rigs, seismic recording systems, and geophysical logging units. Its clientele features prominent public and private sector companies, including Oil India, SAIL, Vedanta, and Reliance. These resources and partnerships underline SWPE’s leadership in natural resource exploration.
Disclaimer: The article is for informational purposes only and not investment advice.