No output: MOL hits dry well in Tal block

KARACHI: According to the Pakistan Petroleum Information System (PPIS), MOL Pakistan Oil and Gas Company has found a dry well in Tal block, a brokerage house reported on Thursday. “According to latest numbers released by PPIS, Tolanj South-01, a well in Tal block, has been encountered as a dry well,” said Sadiq Samin of Sherman Securities. The well was drilled in May 2015 and it reached the depth of 5,990 metres against the target of 5,152 metres. “The well was operated by MOL and Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) both had a stake of 28% each, while Pakistan Oilfields Limited (POL) had a 21% stake,” he said. “Our back-of-the-envelope working suggests that after-tax cost of the dry well is around Rs0.15 per share for OGDC and Rs0.33 per share for PPL. Earnings of POL are likely to erode by Rs2 per share.”

Published in The Express Tribune, May 20^th, 2016.

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