Mercator Commences Oil Production From 1st Well
Mercator Petroleum Limited, a Subsidiary of Mercator Limited had announced the commencement of oil production and dispatch from its 1st well, Jyoti-1 as part of in their EWT CB-ONN-2005/9 oil block in the Cambay basin.
The Company began mobilizing the Jyoti-1 well in August 2018, after receiving the mining lease in June 2018 for a period of 20 years. The Company has signed a MoU with the Indian Oil Corporation for sales of its crude oil, at benchmarked rates. The Company is expected to ramp up the production significantly in the coming months, as it brings the second well, Jyoti-11 under production.
Mercator Petroleum has an approved Field Development Plan for 23.79 million barrels of proven high-quality oil in the highly prolific the Cam bay basin. The oil block produces light sweet crude oil; the Company aims to close FY19 at a production rate of approximately 5,500 barrels of oil per day. The Company expects the reserves to increase significantly as it enters the second phase of exploration. The oil & gas segment is expected to be Mercator's largest growth driver FY20 onwards, with 35% ofFY20's EBITDA contribution coming from oil &gas.