The company’s first discovery in the area covered by the Kotri exploration licence was in Kotri X-1 well in 2016, which only provided initial gas flow of 3.4 mmcfd.
PHOTO:FILE
KARACHI: Pakistan Petroleum Limited (PPL) made an oil and gas discovery at exploratory well Yasar X-1 located in Kotri block (2468-12) in Sujawal district, Sindh.
“Initial testing in the upper sand of Lower Goru Formation showed a flow of 3.2 mmscfd (million standard cubic feet per day) of gas and 475 barrels per day of condensate…confirming the presence of commercial quantities of hydrocarbons,” the company said in a statement issued to the Pakistan Stock Exchange (PSX) on Monday.
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“Actual flow potential of the well will be determined after completion of the test,” it said. PPL holds 100% working interest in the block and remains its sole operator as well. Its share price improved 0.43% or Rs0.92 to Rs213.37 with 372,700 shares changing hands at the PSX. “Given production flows will have an annualised impact of Rs0.35 per share on PPL’s earnings at $70 per barrel of crude oil and rupee-dollar parity of Rs125 to the US dollar,” Taurus Securities said in a commentary to its clients. To recall, the company’s first discovery in the area covered by the Kotri exploration licence was in Kotri X-1 well in 2016, which only provided initial gas flow of 3.4 mmcfd, it said.
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“According to our calculation, the impact on annualised earnings per share of this discovery is around Rs0.55,” Sherman Securities estimated.
Published in The Express Tribune, August 14th, 2018.
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