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Indus Gas, one of the last companies to float on AIM before the market crashed last summer, has high hopes for its drilling exploits in India near the Pakistan border.
The company, founded by Indian entrepreneur Ajay Kalsi, has been sinking deep exploratory wells at a site where it already has gas reserves at shallower levels. While it is keen to emphasise that tests were still in their preliminary stages, it said there were signs of gas there.
“We need to do further testing and bring some specialist kit in. We are optimistic and quite pleased because it looks like there is something there,” said finance director John Scott. “But it is very early days,” he cautioned.
Indus floated last June at 164p a share to raise £25 million for expansion. Since then, the shares fell to 115p over the winter before picking up to 200p this morning.
It has about £14 million left but in April next year willsee revenues come into the firm for the first time from its main project — to supply gas from its wells to a power station generating electricity for the Indian national grid.
