This small-cap stock surged by 3.13% in a volatile trading session!

On Monday the share of Hindustan Oil Exploration Company Ltd closed at 3.13% higher than the previous close after the company announced resuming the production from D-1 Well in its B-80 Field located in Western Offshore.

The management of Hindustan Oil Exploration Company Ltd announced on Monday morning the reopening of the D-1 Well, which the company closed earlier due to a leak that occurred in the Suction Control Valve control line.

Management in their recent announcement said “ This is to update that Company has resumed oil production from D-1 well in its B-80 field, located in western offshore, after arresting a leak in the Surface-Controlled Subsurface Safety Valve control line. Due to the aforesaid issue, well D1 was shut down and now brought on to production after the pumping of a sealant and opening of the Surface-Controlled Subsurface Safety Valve isolation valve on the subsea tree. Currently, both the wells are in production, and the flow rate of oil and gas of both D1 and D2 wells are about 1800 BOPD and about 9 MMSCFPD of gas, lesser than the capacity of the wells.”

Presently, the production of the wells is being restricted due to the capacity limitation of the test separator through which the fluids flow and that is because the high-pressure is under a repair. Once the high-pressure is back online, the production from the wells will be ramped up to its intended capacity.

Incorporated in 1983, Hindustan Oil Exploration Company Limited is engaged in the exploration, development, and production of crude oil and natural gas in India, both onshore and offshore. The company is India's first private E&P company, with assets in Tamil Nadu, Maharashtra, Gujarat, Assam, and Arunachal Pradesh (both offshore and onshore). The market capitalization of the company is Rs 1897.69 crore and the 52-week high is 254.15 and the 52-week low is Rs 125.70. Currently, the stock is trading at 143.50.