Indian Stock Market

Hey thnx a lot for that post…i do not hold, but have been looking at this company intently.
On 9/11/07, samir shah wrote: > > > > *Selan Oil Exploration* > *With crude oil price a trifle over $ 77 per barrel and small cap Selan > Oil confirming a crude oil reserve of 45 mn barrels in Bakrol (just one of > the four oil fields) owned and operated by Selan Oil, effectively worth > close to $ 3.5 bn should this company continue to carry a market cap of a > mere Rs 166 crore.* > ** > *After all the corporate produced 1 lakh barrels of crude in FY07, expects > to do 140,000 barrels in FY08 and 2,00,000 barrels in FY09 and has a oil > production cost of roughly $ 10 per barrel, leaving clean profits of > approximately $ 67 per barrel of oil pulled out and sold. * > ** > *Just maybe this corporate may be worth a take-over by a strong E&P player > like Reliance or Ongc.* > ** > > Dear Mini: > > Please find below a seriatim reply to your queries : > > 1. I want to understand the company’s business better and therefore > request you to kindly send me any writeup(though I’ve read your Annual > reports for last 2-3 years & website), which explains company’s business > elaborately. Any presentation made to the investor > community or during a conference would be appreciated. > > *Selan: The Company has entered into a contract (Production Sharing > Contract) with the Government of India for 5 oil/gas fields in and around > **Ahmedabad, Gujarat**. These fields were initially operated by ONGC and > later awarded to SELAN under Pre - NELP bids. Mining Lease for 4 of these > blocks has been granted to the Company. * > ** > *The Company has 100% ownership of these blocks. The quantity of crude > produced from these oilfields is sold to IOC and the payment is made to the > Company as per the prevailing international crude oil prices (+2%). > * > 2. I’m interested in gauging the business potential of the > company.Therefore purposefully interested in knowing the business > processes, areas of activity, where all the company operates, assets owned > in the form of gas wells/basins, licenses won . > > *Selan: Refer Q1. > * > 3. What are the future plans of the company- timeline for the oil/gas > exploration in the next two years. > > *Selan: The Company plans to drill approximately 8-10 wells in each of the > next 2 - 3 years to scale up its production significantly. > * > 4. Background of the promoters, foreign partners. > > *Selan: Please read Corporate Governance section of the Annual Report for > details on promoters. **We have no Foreign / Indian Partners. * > > > *5. *Possible growth rates and margins– if declared by company. > > *Selan: 30 - 40% increase in sales / production in each of the next 2 - 3 > years. > * > 6. There was a newsitem in the Hindu that the industry sources put > oil/gas reserves for Selan at 45 mn barrel. Comments pls. > > *Selan : Theses figures relate to our Bakrol field and are certified by an > independent agency. > * > *Regards. > > Gunjan Jain > > Company Secretary* > *Selan Oil Exploration > * > > > > Samir Kumar Shah. > 9830405060 > > >