Share price of this micro-cap stock moved up by nearly 5.8 percent on BSE to Rs. 194 in the trading session of Friday, compared to its previous closing price of Rs. 183.35, after receiving an order for the supply of CBM Gas.
With a market capitalisation of Rs. 607.5 crores, at 10:44 a.m. the shares of Deep Energy Resources Limited were trading in the green at Rs. 189.9, up by 3.7 percent.
The company has delivered positive returns of about 69.5 percent in the last one year and nearly 24.2 percent in the last six months. However, so far in 2024, it has given negative returns of around 0.16 percent.
According to recent regulatory filings with the stock exchanges, a Notification of Award was issued by Oil and Natural Gas Corporation Limited (ONGC) on behalf of the consortium for the allocation of CBM Gas from the North Karanpura Block of CBM Asset.
ONGC, on behalf of a consortium consisting of ONGC, Indian Oil Corporation Ltd. (IOCL) and Prabha Energy Private Limited (PEPL), has allocated 0.05 MMSCMD (50,000 SCM per day) CBM Gas to Ultra Gas Trading Limited from North Karanpura Block of CBM Asset.
Prabha Energy Private Limited is a subsidiary company of Deep Energy Resources Limited that is involved in the exploration and production of Coal Bed Methane (CBM) Gas.
The time period mentioned in the filings associated with the order is 3 years from the date of the actual commencement of Gas Offtake or 15 days before the expiry of the offtake window, whichever is earlier.
The applicable Gas price will be the Reserve Gas price Plus a premium of US$ 0.10 per MMBTu.
In terms of financials, the revenue from operations of Deep Energy grew by 21.05 percent QoQ from Rs. 0.57 crore in Q2 FY23-24 to Rs. 0.69 crore in Q3 FY23-24.
The net profit of the company is Rs. -0.28 crore in Q3 FY23-24, a growth of 61.6 percent on a quarter-on-quarter basis from a loss of Rs. 0.73 crore in Q2 FY23-24.
Deep Energy Resources Limited, formerly known as Deep Industries Limited, along with its subsidiaries is engaged in the business of onshore exploration & production assets in both conventional and unconventional hydrocarbon categories.
Written by Shivani Singh
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