Asian Energy Services Limited (AESL) has announced the discovery of oil at the onshore Mevad field in Gujarat. The discovery follows the drilling and testing of a new well, NM-01, which reached a depth of 1,650 meters and encountered three hydrocarbon-bearing sand intervals: Mandhali, Sobhasan, and Kalol. The well is currently producing approximately 100 barrels of oil per day (bopd) during the testing phase from the Sobhasan sand. Data indicates a potential peak production rate of 125-130 bopd. The Kalol-III reservoir has also shown hydrocarbon indications, and testing will be conducted at a later stage. Field partners plan to drill additional wells to assess the full extent of the oil pool and its development potential. Mr. Kapil Garg, Managing Director for Asian Energy Services Ltd., expressed excitement about the success, stating that recoverable reserves are expected to increase significantly. The oil produced will be supplied to domestic refineries under offtake arrangements, with crude pricing linked to the Brent benchmark. Under the Revenue Sharing Contract, Asian Energy holds a 50% participating interest in the project, Oilmax Energy Private Ltd holds 10%, and other partners hold the remaining interest. This discovery is expected to add incremental cash flow and aligns with the company's focus on disciplined, low-cost resource development. The discovery also coincides with Asian Energy's ongoing merger process with Oilmax, expected to enhance operational visibility during consolidation by adding incremental production capacity.
