The CFO of Assam Company, Abhay Chowdhary informs that the company has got a tie-up with DMS Exploration to bid for NELP 6. Now, since DMS Exploration has a technology to detect the presence of hydrocarbons, Assam Company has got the exclusive rights in India and SAARC countries, he says.
Chowdhary also says that the company's board has approved an FCCB issue of USD 75 million for funding its acquisitions.
Excerpts from CNBC - TV18's exclusive interview with Abhay Chowdhary:
How much you are paying for this?
We have got 50% of the Founders equity in hostile exploration. Typically, if you see the companies abroad, founders equity is given at a much lesser rate as compared to India. We had got this founders share at the rate of 0.001% that of one share. So per share, we did not have to invest much to obtain that right.
Where does it fit in your plan?
We have got a tie-up with DMS Exploration. We also have a tie up with them to bid for New Exploration Licensing Policy (NELP 6). They have got this special technology called 'micro magnetic', which detects the presence of hydrocarbons. With that technology, we have got an exclusive right in India and in the SAARC countries. In any case, we will be bidding for the blocks along
What would both these stakes picked up by your company value the oil division of your company at?
It will boost the value of all our divisions. We are working on aggressive plans to acquire more and more acreage, which looking at today's scenario, would definitely boost the prices.
Are there targets that you can set up in terms of topline growth going into this financial year or the next one? A; We have just started trail production in Amguri field and we expect to dig more there after the 2D study and the 3D study is done. However, what we see is an exponential shift about two-three years down the line.
Will you be working on the Amguri field yourself and or with others?
We have got an agreement with Canoro. Maybe all three of us or two of us will be going for the NELP 6 round.
We believe you will be issuing warrants to three funds, the Mauritius based funds. Is that how you plan to raise funds for all these explorations?
That is only the first phase of getting funds. We have approved USD 75 million of FCCB.
Will that be enough to fund both your acquisitions?
Yes, absolutely.
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