- Selan Exploration is a Gujarat based Oil exploration and Production Company having rights to develop three proven oil fields in Gujarat – Bakrol,Lohar and Indora.
- As per estimates the Bakrol oil field having a reserve of 73 million barrels and Indora having much more .On an extremely conservative basis and the average oil price as $ 90 /barrel , the value of reserve will be atleast 100 times the current market capitalization of the company.
- Selan is one of the low cost producer and even after providing the share of government and deducting the production cost, company is sitting on a gold mine.
- The company has been waiting for government approvals for start drilling the wells. The oil fields at Bakhrol has proven reserves.After a long wait, recently the company got approvals for drilling the wells and have already drilled the first well.John Energy is the drilling contractor
- When they couldnt get approvals from Directorate General of Hydrocarbons and Ministry of petroleum for drilling new wells,selan has been concentrating in more Seismic data acquisition , Processing and interpretation activities.Company also awarded two more fields namely Ognaj and Karjisan.
- The company has been a regular dividend payer since 2008. In December 2010 the company gave bonus in the ratio 1:10
- The company announced buyback of its shares at a price not exceeding Rs 350 for 10% equity.The buyback will be closing on 13th september,2013.As per the annual report,the company has purchased back 1.61 lakh shares till march 2013, out of the 5.78 lakh shares for which money is kept aside.This shows the confidence of management in the future growth
- Proven Value Investors like Porinju Veliyath and Ashish Chugh have been reccomending this stock as a value pick and they have investments in it
- At the cmp of 260/-, the market capitalization of this company is just 430 crores. Selan Exploration can do a CAGR of 50% over next 5 years.
The link to company's website is given : http://www.selanoil.com
