This micro-cap energy company received an order from ONGC in collaboration with IOCL and PEPL to supply CBM gas

The stock has given returns of 69 per cent in a year and multibagger returns of 453 per cent in the last 3 years.

Oil and Natural Gas Corporation Limited (ONGC), in collaboration with Indian Oil Corporation Ltd (IOCL) and Prabha Energy Private Limited (PEPL), has allocated 0.05 MMSCMD (50,000 SCM per day) of Coal Bed Methane (CBM) Gas to the subsidiary of Deep Energy Resources Ltd namely Ultra Gas Trading Limited. This allocation, facilitated through a Notification of Award (NoA) issued on April 3, 2024, pertains to the North Karanpura Block of the CBM Asset.

The contract, awarded entails the supply of CBM Gas for a duration of three years from the date of actual commencement of Gas Offtake or 15 days before the expiry of the offtake window, whichever comes earlier. The commercial consideration for the contract involves a pricing mechanism comprising the Reserve Gas price plus a premium of US dollar 0.10/MMBTU.

With a structured timeframe and clear commercial terms, the contract aims to ensure a steady supply of CBM Gas from the North Karanpura Block, contributing to India's energy security and bolstering its position in the global energy market.

Deep Energy Resources Ltd. is an oil and gas company. It engages in the provision of oil and gas services. The firm has interests in air and gas compression; work over; drilling; gas dehydration; and oil & gas exploration as well as production.

Today, shares of Deep Energy Resources Ltd trading at Rs 190 per share up by 3.55 per cent. The stock’s 52-week high is Rs 237 and its 52-week low is Rs 109. The stock has given returns of 69 per cent in a year and multibagger returns of 453 per cent in the last 3 years.

This Energy micro-cap stock should be kept under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.