Interlink Petroleum Limited (last quoted at Rs. 31 on 22.01.13) is engaged in the exploration and production of oil & gas. As per update dated 29.11.12 on BSE, the Government of India (through Directorate General of Hydrocarbon) has considered the following for its Modhera field.
(1) 2P STOIIP (Stock tank oil initially in place) of 2.3835 MMBO may be agreed for Modhera field.
(2) EUR (Estimated ultimate recovery) for the field would be considered later by GOI after conclusive testing in wells Modhera#1 and Modhera#2.
If I have understood the above correctly, the above field has minimum 2.38 Million barrels of oil on conservative basis as per Government of India and the company may go ahead for commercial production of the same. Ultimate reserves may be much higher (would be considered later by GOI after conclusive testing in wells Modhera#1 and Modhera#2).
Further, if my calculations are right, this initial conservative estimate of 2.3835 Million barrels of oil reserve amounts to 1222 crores (based on crude oil price of $ 95 per barrel). If these reserves are exploited over a period of around 10 years, it shall result in an annual turnover of around 120 crores and a net profit of may be 45-50 crores. With same kind of turnover and net profit, Selan Exploration is quoting at Rs. 303. Expect Interlink Petroleum to reach the said level once commercial production of oil starts.
