Jubilant Energy shares rise as drilling begins at Kharsang Oil Field

Shares in oil and gas exploration company Jubilant Energy rose on Tuesday morning after the company reported that spudding had commenced at its well in the oil producing Kharsang Field.

Spudding is the technical term used to describe the initial process of drilling a well. Jubilant Energy reported that the procedure was being undertaken at the first of six planned wells as part of its Phase III Extension development drilling campaign in Arunchal Pradesh, a northeastern state of India.

This particular phase was approved by the management committee of the Kharsang Field in January 2013 following the conclusion of a seven well Phase III drilling campaign undertaken between July 2011 and August 2012.

Six of the seven wells in the Phase III campaigbn have been put into production and currently contribute approximately 700 barrels of oil per day.

One further well tested also positively for gas and has been held for future gas productiobn as it is commercially viable.

The Kharsang Field is operated by GeoEnpro Petroleum, which is a joint venture between GeoPetrol and Jubilanty Enpro. Jubilant holds a 25% interest in the block through its subsidiary Jubilant Energy. The other member of the consortium is Oil India.

Jubilant Energy entered the oil and gas business in 1995 by acquisition of a stake in a producing field in the north eastern part of India. Its portfolio is located in the hydrocarbon basins of Krishna Godavari, Assam-Arakan, Cambay and Cauvery in India and the Bass basin in Australia.

Jubilant Energy's share price was up 5.19% to 20.25p at 08:00 on Tuesday.

MF