KARACHI: MOL Pakistan has found fresh oil and gas deposits in a well located in the Tal block, Khyber-Pakhtunkhwa and commercial production from the well is expected to start in April 2017, according to a bourse filing on Tuesday.
“The well has shown flow of 438 barrels per day (bpd) of condensate (crude oil), 15.7 million standard cubic feet of gas per day (mmscfd) with 35 barrels of water per day,” Pakistan Oilfields Limited (POL), which holds 21.05% stake in the block, said in a notification to the Pakistan Stock Exchange. Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDC) own commercial stakes of 27.76% each in the block. MOL Pakistan is the operator of the block.
Share prices of these companies fell at the stock exchange as investors resorted to profit-selling. POL stock fell 2.16%, or Rs12.14, and closed at Rs547.44, PPL stock dropped 1.13%, or Rs2.19, to Rs191.13 and OGDC stock dipped 1.21%, or Rs2.01, to Rs163.77. The POL notification added that hydrocarbons were encountered in the Maramzai-04 development well. The well has been completed in Lockhart, Hungu and Lumshiwal formations.
Re-perforations of the Lockhart formation for better communication and acid job were also planned at the well and production rates after these jobs may differ from the rates mentioned, it added.
JS Research analyst Syed Atif Zafar said the new discovery would add to the earnings per share of commercial stakeholders. “We estimate earnings impact of Rs1.2 per share for POL, Rs0.2 per share for PPL and Rs0.1 per share for OGDC.”
“However, we believe the size of the discovery is somewhat a disappointment given better numbers witnessed in earlier discoveries in the Tal block,” he added.
Published in The Express Tribune, December 21st, 2016.