Pakistan has found notable fresh oil and gas reserves in the North Waziristan district in Khyber-Pakhtunkhwa province as well as awarded new oil and gas blocks to step up exploration activities and reduce reliance on imports.
In a notification to the Pakistan Stock Exchange (PSX) on Thursday, Mari Petroleum reported “the Lockhart formation in Shewa-2 well was tested (post-acid) at gas flow rate of 51 mmscfd (million standard cubic feet per day) and 391 barrels of condensate per day.”
Mari Petroleum Company Limited (MPCL) is the operator of Waziristan block with 55% working interest along with joint venture partners, Oil and Gas Development Company Limited (OGDCL) and OPI, having 35% and 10% working interest, respectively.
The notification added that the well (Shewa-2) was drilled down to 4,577 metres on November 1, 2023 to assess the Lockhart and Hangu formations, which were previously discovered at Shewa-1 well, and to test the hydrocarbon potential of the well’s exploratory targets ie, Samanasuk and Kawagarh formations.
Akseer Research Director Mohammad Awais Ashraf said Shewa-1 well test showed a flow of 50 mmcfd of gas and 300 barrels per day of oil from the Lockhart formation.
He said total flows from Shewa would have an impact of Rs95 and Rs1.9 on earnings per share (EPS) of Mari and OGDCL, respectively.
However, production from the field was subject to the construction of a gas transmission pipeline and a conducive and secure working environment, he said in a commentary.
In another notification, OGDCL reported that the company participated in a competitive bidding round for exploration blocks held by the government in November 2023.
The Directorate General of Petroleum Concession (DGPC) has communicated the provisional award of new exploration blocks to OGDCL, Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL).
The blocks have been awarded based on the work units committed by OGDCL and its joint venture partners. Four blocks have been provisionally given to OGDCL including two each in Sindh and Balochistan.
The blocks awarded in Sindh were Murradi (2,767-7) and Gambat-II (2,668-25). In Balochistan, the newly awarded blocks were Kotra East (2,867-8) and Saruna West (2,666-1).
“Participation in the bidding round is in furtherance to the company’s strategy and business plan to invest in core business, accelerate exploratory activities and augment hydrocarbon reserves balance,” OGDCL said in the notification.
OGDCL is the 100% operator in Kotra East and Murradi blocks. It has 30% operating interest in Gambat-II and Saruna West blocks. Its JV partner PPL enjoys 70% operating interest in Gambat-II.
Besides, POL has 40% operating interest in the Saruna West block, while the remaining 30% operating interest is owned by PPL.
Published in The Express Tribune, January 12th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
1731655243-0/BeFunky-collage-(61)1731655243-0-165x106.webp "article")
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ