“The Company had informed the Stock Exchanges that Hindustan Oil Exploration Company Ltd. (HOEC), on behalf of the consortium of the North Balol Field, has executed a Gas Sale & Purchase Agreement (GSPA) with Gujarat State Petroleum Corporation Limited (GSPC) on November 10, 2004 for supply of a daily contract quantity of 30,000 standard cubic meters of gas.
GSPA has “take-or-pay” provision and is for a primary term of 5 years and secondary term of successive 2 years. The price of the sale gas is Rs. 4.213 per standard cubic meters.
HOEC has 25% Participating Interest and is the Operator of the North Balol Field.”