Deep Industries jumped by its maximum permissible level of 5% to Rs 122.90 after net profit rose nearly 40% to Rs 4.21 crore in Q2 September 2009 over Q2 September 2008.
Capital Market / 07:16 PM , Oct 17, 2009
There were outstanding buy orders for over 95,000 shares at the upper limit on BSE.
Net sales rose 68.5% to Rs 14.39 crore in Q2 September 2009 over Q2 September 2008. The results hit the market after trading hours on Friday, 16 October 2009
Deep Industries, a small-sized Ahmedabad-based company engaged in the business of gas compressors and onshore rig services, is set to emerge as one of the largest coalbed methane (CBM) companies of the country with director general of hydrocarbon (DGH) awarding it seven CBM blocks last week.
Deep had already bagged two CBM blocks in 2006 รข€” one each in Madhya Pradesh and Andhra Pradesh.
The production sharing contract for another seven blocks in Orissa, MP, Tamil Nadu and Assam will be signed shortly. With this, Deep will have a total gas reserve of 7 trillion cubic feet (TCF).
Coalbed methane allows extraction of methane from coal without affecting the physical properties of coal. Normally from any CBM block, around 50% to 60% reserve is recoverable. Even at 50% recovery, or 3.5 TCF, the potential reserve would be valued at $17 billion.
Deep Industries will be the operator for all seven blocks. While it has about 80% holding in three blocks, it partnered with Lanco Infratech and KGN Industries for two blocks each. Of the 10 coalbed methane blocks on offer, only eight received bids. The only block for which Deep did not bid went to Essar.