Oil and gas discovered at Makori Deep-1 in Pak

19/06/2016 00:26 AST

Pakistan Oilfields Limited, the operator of Tal block, has discovered a “significant amount” of hydrocarbon reserves in an exploratory well - Makori Deep-1.

“As a result of drill stem test (DST) conducted at the well to test the potential of Lockhart formation, the well has tested 2,020 barrels per day of crude oil, 5.4mmscfd of gas at 40/64” fixed choke size at the flowing well head pressure of 1,177 psi.”

The POL explained that DST was a procedure for isolating and testing the surrounding geological formations through the drill stem.

The test was said to be a measurement of pressure behaviour at the drill stem and was a way to obtain important fluid sampling information and to establish the probability of commercial production.

Accordingly, the company cautioned, “It should be borne in mind that actual production may differ significantly from the test results.”

The company asserted that well stimulation through acid wash was also planned at the well and the true potential of the well would be known after the conclusion of acid stimulation job. Production from the well shall start after the completion of pipeline to the production facility.

Analyst Shahbaz Ashraf at Arif Habib Limited commented that the gas of the well qualifies to be priced according to Petroleum Policy 2012.

The revenues from the well would augment the bottom lines of OGDC which has 27.8pc interest; PPL also with 27.8pc and POL with 21.1pc stake in the block.

Going forward, the operator of Tal block is also testing for hydrocarbon presence in Tolanj West -01, which has reached its target depth.

According to the analyst, assuming oil price at $45/bbl and exchange rate at Rs105, positive impact of latest discovery on OGDC’s stake works out at Re0.10; on PPL at Re0.16 and on POL at Rs1.23.

Going forward, the operator of Tal block is also testing for hydrocarbon presence in Tolanj West-01, which has reached its target depth. A discovery of similar quantum in the above mentioned exploratory well can have a positive impact on the movement of stock prices. Furthermore the volatility in the international oil prices can keep the price performance of the scrips in check, it said.

The Gulf Today