Shares in oil and gas explorer Selan Exploration Technology surged 7 per cent on Friday heading towards its biggest single-day gain since September.
Traders say the stock has jumped in anticipation of production ramp-up and recent slump in crude oil prices has already been discounted.
Domestic brokerage Sharekhan says the company is taking steps to commercialise some of the 11 wells drilled earlier in 2014.
Management has guided for production volumes of 0.5-0.6 million barrel annually in the next 2-3 years, up from 0.16 million barrel in FY14, adds the brokerage.
Selan Exploration is trading at 10.8 times to its 12 months forward earnings compared with 24.35 times for rivals.
Copyright: Thomson Reuters 2014
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