Selan Exploration Technology Detail
As per the Company website it is engaged in field of Petroleum Exploration, Development and Production as well as in the field of Geophysical Data Acquisition, Processing and Interpretation.
It has rights to develop five Oil fields in state of Gujarat. All these Oil fields have proven Oil and Gas reserves.
The various seismic and reserves assessment studies have established substantial amounts of oil and gas reserves in these blocks.With assured offtake of the entire oil and gas production from these blocks by the Government, as per the terms of the Production Sharing Contract (PSC) there is zero marketing risk associated with this project.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Selan Exploration Technology Stock Performance
The stock has excellent run from year 2002 to year 2015. It went from 7 INR stock to above 600 in this time period giving close to 90 times return in one decade period. There was brief under performance after Global Crisis and consolidation period from 2010 to 2013. Apart from these time period it has performed well over the years.
Last couple of years were not good for stock as it went from 600 to 200 and is consolidating in this range for last couple of years.
The Company is in need to adequate capital to tap on the potential of Oil fields it has. This may be one reason of not sharing dividend with Share Holders.
Selan Exploration Technology My Opinion
Selan Exploration Technology is a Oil Exploration Company. It is sitting on huge asset of 5 Oil fields. As per Company these fields have verified reserves of Oil. Government as per the contract will buy all the production from these fields so Company has not to invest any money looking for other Customers and distribution of reserves. These are huge positives for the Company.
There are negatives as well. It is in need to Capital to make use of these assets. The Company is planning to adopt a slow but steady approach. If the Company can execute the plan well then it would be great for Company as well as shareholders. It can be a multi baggar if the plan is executed well and Oil fields have good reserves.
So investors should keep a close eye on the Company. It is a make or break kind of situation for the Company. You need to check progress of Companies like how it is utilizing money to develop the Oil fields and how much output it is having from the fields.
Based on these you need to make a call on this Company. I will be tracking this Company as it has potential to make money for investors and everything depends on how well the plan is executed.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.