2010VP01 Assamco

I started tracking Assam Company (500024) on 10 Dec 2009 at Rs. 18.70
now the scrip is Rs. 23.55 up 25%

Assam Company is a member of the U.K. based Duncan Macneill Group
having interest in Tea and Road Transportation & oil and gas field.
Assam Company has demerged the Oil & Natural Gas Division and is
operating under the name and style of Assam Oil & Natural Gas
Limited. The company plans to merge its subsidiary Namburnadi Tea
Company (NTCL) with the parent company.It has around 19 tea
plantations spread over more than 15000 hectares which is valued at
300-350 crore
However it is pursuing its E&P activities in Oil & Gas Sector under
the co itself (Assam Company Limited (ACL) ) in the following blocks
in Assam and Assam-Arakan Basin in association with Canoro Resources
Limited, Calgary, Canada (CRL) CRL is the Operator under PSC.
ACL’s share
(a) Amguri - Developed Block 40%
(b) AA-ON/7 - Exploratory Block 35%

The Company also operates three Marginal Fields under service
contracts from ONGC. These fields are operated by ACL independently.
ACL Share on Oil
Laxmijan - Discovered Block 38%
Barsilla - 35%
Bihubar 35%
In respect of Gas, the Company has 70% share.

Assam Company had back in Nov 2006 announced the successful raising of
U$ 46 million (Rs 210 cr) through zero coupon unsecured foreign
currency convertible bonds (FCCBs). The bonds, having tenure of five
to seven years, will be convertible into equity shares at Rs 28.75.
According to the company, the funds raised through FCCBs would be
invested for exploration and development of Amguri and AA-ON/7
oilfields in Assam. The company holds non-operating interests in both
the blocks.
Now the company had bought back FCCB worth14.2 million ( 31%of
outstanding) The Company's outstanding FCCBs due 2011 as 29 12 2009
stands at USD 31.8 million.

The shareholding pattern of the company is as follows
Type Ref Nos %of Tot
Promoter Holding 1 143071476 46.19
Foreign Inst Investors 2 65853591 21.26
Body corporate 25028971 8.08
Insurance Companies 3 8550914 2.76
General public 4 67256011 21.71
309760963 100.00
Major Shareholder each reference is detailed below
Type Ref Nos %of Tot
Assam Oil Company Ltd. 1 119088048 38.45
Lotus Global Invest Ltd 2 27000000 8.72
Mavi Invest Fund Ltd 2 11511952 3.72
Invest-India Mauritius Ltd 2 27000000 8.72
Lic of India 3 6443490 2.08
Reliance Capital 4 6000000 1.94
The company has stated its reserve of OIL at Amguri is 60 MMbbls and at AA-ON/7 is 80MMbbls
At US$ 7.5 profit a barrel after all cost for recovery of oil the valuation for oil for the consortium at Amguri is Rs 2070 crore. at AA-ON7 is Rs. 2760 Crore
The company has 40% share in consortium which put the value of OIL at AMGURI alone at Rs. 828 crore.The company has 35% share in consortium which put the value of OIL at AA-ON/7 which will work out to Rs. 966 crore. Which put the intrinsic value of OIL in Oil business at Rs 1794 crore as against the Rs 730 crore market capitalisation at Rs 23.55
(the value of 229+617 bcf of GAS is not considered for valuation )
Assumption First M in MMbbls means One Million Second M in MMbbls means 1000 Barrel A Barrel is roughly 158 ltrs of crude
Please evaluate independently before investing
http://www.bseindia.com/xml-data/corpfiling/AttachHis/Assam_Company_(India)_Ltd_030311.pdf