KARACHI: Mari Petroleum Company announced on Wednesday it has made a “significant” crude oil discovery at the exploratory well Halini Deep-1 in Karak Block, according to a stock notice.
It is Mari Petroleum’s third consecutive discovery in the Karak Block.
Karak Joint Venture consists of Mari Petroleum as operator with 60% working interest while MOL Pakistan acting as a joint-venture partner with 40% working interest.
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The first crude oil discovery at Halini X-1 was made in 2011 while the second discovery of crude oil, condensate and gas was made at Kalabagh-1A in 2015. “The discovery at Halini Deep-1 has further augmented Mari Petroleum’s exploration success rate, which is already the highest in the country.
“This discovery will further enhance the country’s and company’s hydrocarbon reserve base and play a pivotal role in achieving the company’s planned growth and expansion targets,” said the company statement.
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Investors reacted positively to the news, as the share price of Mari Petroleum increased 5% on Wednesday. With as many as 572,200 shares changing hands, its price gained Rs32.34 per share to close at Rs682.47.
The government has a 20% stake in Mari Petroleum while Oil and Gas Development Company Limited (OGDCL) controls 20% shareholding. Fauji Foundation and general public control 40% and 20% shares of Mari Petroleum, respectively.
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The net profit of Mari Petroleum for July-Dec 2015 was a little over Rs2 billion, down 21.5% for the same period of the preceding year. “The main reason for the decrease in profit is an increase in operating expenses and exploration and prospecting expenditure,” according to the company chairman’s performance review for the six-month period.
Published in The Express Tribune, March 31st, 2016.
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