HOEC targets 10x production jump in three years
Management sees 10,000-11,000 boe/d by June 2027 and 32,000-33,000 by 2029, backed by a 20-well drilling program. HPCL crude sale being resold, cash in 2-3 months. No equity raise planned.
— 3 earlier stories on Hindustan Oil Exploration Company Ltd. →What's new
- HOEC targets 10k-11k boe/d by June 2027, 32k-33k by June 2029
- 20-well drilling program across B-80, Dirok, Kharsang assets
- HPCL crude sale being resold to third parties; cash in 2-3 months
- No equity raise; funding via internal accruals and bank facilities
Why this matters
The targets imply a multi-fold ramp from current levels, but the company hasn't disclosed a baseline. Execution risk is high: the HPCL dispute hit revenue by ₹259 cr last year, and trailing revenue is down 48.5%. No equity dilution is a positive, but the drilling programme must deliver to meet these aspirational numbers.
What we're watching
- Drilling update over next 12 months as first wells spud
- HPCL dispute final resolution and cash receipt
- Any production guidance for FY27 from sell-side
The full read
HOEC management laid out production targets that would transform the company — 10,000-11,000 barrels of oil equivalent per day by June 2027 and 32,000-33,000 by June 2029. That is a multi-fold jump from today's levels, backed by a 20-well drilling programme across its B-80, Dirok, and Kharsang assets. The catch: the company hasn't said where it starts from. Trailing revenue is down 48.5%, and last year's ₹259-cr HPCL crude sale reversal hit profits. On the plus side, management ruled out an equity raise and said the HPCL crude is being resold, with cash coming in 2-3 months. Low debt at 0.09 D/E gives some headroom. But these are aspirational numbers from a company that hasn't delivered consistent production growth. The next 12 months will show whether the drilling programme is real.
Questions answered
- How ambitious are HOEC's production targets relative to current output?
- The targets of 10,000-11,000 boe/d by FY27 and 32,000-33,000 by FY29 represent a significant leap from current production, which the company has not disclosed but is likely under 5,000 boe/d given trailing revenue of ₹75 cr per quarter.
- What is the status of the HPCL crude sale dispute?
- The crude is being resold to third-party buyers, and cash realisation is expected within two to three months. The dispute previously forced HOEC to reverse ₹259 cr in revenue.
- Will HOEC raise equity to fund the drilling programme?
- Management confirmed no plans for an equity raise. The development programme will be funded through internal accruals and bank facilities, aided by low debt/equity of 0.09.
- What are the key assets in the drilling programme?
- The 20-well programme targets HOEC's B-80 offshore field, the Dirok gas asset, and the Kharsang onshore field. No further details on timing or expected contribution were given.
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All notes on HINDOILEXP →- 12 Jun 2026 · 1:06 PM IST HOEC targets 10x production jump in three years
- 1d ago HOEC's Q4 presentation confirms prior results, offers no surprises
- 1d ago HOEC FY26 profit down 26% after ₹259-cr HPCL sale reversal
- 1d ago HOEC PBT falls 26% as ₹259-cr HPCL sale cancelled