Quick notes AGM 2023 please let me know in case I missed anything.
Operational review:
a) started a drilling campaign in three fields as oil prices were high. Nearly 10 fields drilled. Karjisan back in production and is stronger than before.
b) focused during the year on enhanced governance practices and for risk management
c) increased diversity by 30%
d) investor roadshow will be posted on website for transparency.
e) increased focused on safety. Aim to be top quartile on safety
Future strategy:
a) drilling campaign have confirmed bakrol and karjisan might have improving prospects which the company will update stakeholders in due course.
b) all capital decisions will be made assuming oil prices at a more stabilized level (not at cyclically higher price).
C) Main focus on growth! Aim to move from crude to gas over the longer term. Therefore, will focus on adding more gas asset.
d) Will not do rank exploration. The company has enough resources for 7-8 years. Will focus on discoverer resources.
e) Looking to achieve reserves replacement ratio of more than 1. Trying to increase the recoverable factor in existing fields. Next year will focus on recovery potential such as water injection pilot
Capital allocation
a) while deciding on new projects they aim for Mid to high teens irr assuming lower oil price
b) When started fy 23 they had 200 crs of cash with 500 boepd and ended up with the same amount of cash but increased production to 750 boped until now.
Q&A
Achievements: a) Getting positive result from Bakrol. Karjisan drilling wells have positively surprised the management team.
b) smooth transition of takeover. Created a strong diverse board and undertook measures on safe operations.
Disappointments: a) Lohar is a declining field. Not producing as much oil and gas. Focusing on managing the cost structure in Lohar.
Antelopus Update
a) Has four license and an onshore in assam another one from Andhra
b) no revenues currently in antelopus
c) Selan in has oil reserves in cambay basin while antelopus has offshore oil and gas assets which gives a diversified portfolio of assets.
d) The money from Sean will first go to developing : duarmara, Mumbai offshore. They will will need more money from investor shareholders and will be banking on insti shareholders on capital commitment.
e) Duarmara field had issues before with forest clearances but now things are cleared up. The production schedule is more mature and is expected to start it by Q424.
Update on Eliao
a) Waiting for transfer approval from ministry. Might start drilling by next
b) Eliao post approval looks like one well for now and then will drive more wells
c) Elias has a one year lifecycle but there an optionality
Other update:
a) Timeline on merger: swap ratio will be decided soon (few weeks possibly). The merger process will take around 15 months.
b) Bakrol ec extension has been applied for. Before second drilling by next year they will have an extra approval.
c) Looking at operating leverage to lower per bbl cost
d) will come back with capes plan for FY 24 during the course if the year
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