It's not Oil, its Cash

Oil India (OIL) is the country's second largest oil exploration and production company. But OIL is not another ONGC. What separates OIL from its more famous big brother is its huge under-exploited reserve base, assets with low 'finding-and-development' costs and a cash rich balance sheet. Oil India has 2P (proven and probable) reserves estimated at 944 million boe, which works out to around twice its 1P (proven) reserve. In contrast, the company's oil production for FY12 stood at 77 Kbopd. That extent of reserves therefore provides sufficient cushion to the topline and bottomline growth for many years. Not only that, Oil

This article was originally published on January 14, 2013.