Operational Performance and Asset Updates

Offshore Assets

B-80 (Flagship Offshore Asset): Production impacted by higher water cut from one producing well. Configuration of compressor trains on platform modified to operate with lower suction pressure, currently in test mode. Workover of two existing wells (D1 and D2) on track, with rig award expected this month and mobilization by October 2026. Goal is to shut off water zones and open new oil/gas zones to increase production. HPCL offtake issue ongoing with slower-than-expected crude sales to third parties; entire inventory expected to be liquidated by end-October/early November 2026. Estimated loss of ₹4-6 crores on crude sales with total loss projected at 7-10%.

B15 (New Block): Field Development Plan (FDP) under preparation evaluating 3-4 concepts including connection to existing ONGC platform to reduce capital costs. Drilling planned for FY28. Reserve levels at 16 MMBOE with potential upside after further processing and first well.

PY-1 (East Coast): Suffered serious production loss. Contract awarded for rig-less intervention to increase short-term production. Drilling of two new wells contingent upon firm take-or-pay agreement with IOCL/GAIL to avoid well shut-in issues. New wells could deliver 15-20 MMSCFD based on PetroVietnam analysis.

Onshore Portfolio

Dirok (Assam): High-potential field with production header pressure at 3,000 PSI from six wells. Currently producing only 50-70% of capability due to evacuation constraints. PNGRB declared DNPL pipeline as common carrier. Pipeline capacity degraded to 1-1.5 MMSCMD from 2.5 MMSCMD due to asset integrity issues. Assam Gas Company Limited conducting hot tapping work to restore capacity by December 2026. No NRL shutdown required due to hot tap solution.

Kharsang: Successfully completed nine-well program, doubling production from last year. Additional workovers completed on 5-6 of 23 non-producing wells. Second phase of nine wells planned with rig identification imminent and tubulars ordered. Virgin gas found in two wells but monetization delayed due to lack of pipeline. Pipeline route survey tender closing August 14, 2026; regulatory clearances needed for forest area. Pipeline laying expected in 6-8 months with connection to Oil India's existing infrastructure. Oil sales ongoing to Digboi Refinery and IOCL.

Gujarat Assets (Cambay Basin - Asjol, Balol, Palej): New belt technology implementation at Balol in trial phase. Palej facility debottlenecked using thermionic heaters, resulting in 5-6% production increase last quarter with 20-30% increase expected going forward. Sucker rod pumps ordered. New exploration block near Palej in final approval stages.

Financial Performance Q1 FY27

Standalone Performance

  • Revenue from operations: ₹117.5 crores (compared to negative ₹194 crores previous quarter)
  • Profit petroleum and revenue share: ₹9.83 crores
  • Net revenue: ₹107.6 crores
  • Profit before tax and exceptional items: ₹12.54 crores (compared to ₹30.4 crores previous quarter)
  • Other income: ₹19.37 crores (includes release of ₹8 crores escrow balance, ₹2 crores insurance claim, ₹2.3 crores Adbhoot acquisition topping)
  • Total expenses: ₹114 crores (includes depletion ₹51 crores, royalty/statutory dues ₹13 crores, stock adjustments ₹41 crores)

Consolidated Performance

  • Revenue from operations: ₹124 crores
  • Net revenue: ₹114.17 crores
  • Profit before tax and exceptional items: ₹6.5 crores (compared to ₹9.01 crores previous quarter)
  • Other income: ₹20 crores
  • Total expenses: ₹128 crores (includes depletion ₹58 crores, royalty/cess/statutory ₹15 crores, stock adjustments ₹41 crores)
  • Includes 10% GeoEnpro sales from Kharsang

Key Operational Metrics

  • Average crude/condensate realization: $95.5/barrel (vs $70.8/barrel previous quarter)
  • Average gas realization: $12/MMBTU (vs $9.8/MMBTU previous quarter)
  • B-80 gas realization: $16.5/MMBTU
  • Dirok gas realization: $12.5/MMBTU
  • Kharsang production increased from 12,300 BOE to 17,400 BOE

Capital Expenditure and Funding

Capex budget increased due to rig shortages and higher contingencies. Planning to raise debt for B-80 program (workovers and three new wells). Current gearing at 0.04 with only ₹20 crores bank loan. Expected to be cash flow sufficient by Q4 FY27 for growth projects.

Regulatory and Other Developments

  • Protest in Tamil Nadu regarding drilling approvals; company has central government approvals and engaging with state government
  • Samudra Manthan scheme evaluation for potential support (primarily for deepwater)
  • HPCL matter under conciliation with High Court Chief Justice appointed

Guidance and Outlook

  • B-80 workovers: October 2026 mobilization, 10-20 days per well, target 500-800 barrels/well and 3-5 MMSCFD
  • B-80 new wells: Three development wells targeting 1,000-1,500 barrels/well, completion by June 2027
  • Dirok connectivity: Expected December 2026 with quick ramp-up possible through gas exchange
  • Kharsang pipeline: 14-18 month timeline for completion
  • Production target: 8,900-13,000 barrels/day range