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Daily Times - Site Edition PPL hits oil and gas reserves in Sanghar
By Abrar Hamza

Saturday, June 29, 2013

KARACHI: Continuing triumph in gas discoveries, the Pakistan Petroleum Limited (PPL) has successfully completed another production testing at its exploration well Adam X-1, located in district Sanghar, Sindh on Friday. In a letter to the Karachi Stock Exchange, PPL stated that this is to inform that PPL operator Hala Exploration License (having a 65 percent working interest) has successfully completed the production testing of deeper reservoirs of lower basal sands (lower Goru formation) at its exploration well Adam X-1 located in district Sanghar. During the Drill Stem Test, the well flowed up to 14.2 million cubic feet per day (MMCFD) gas and 125 barrels per day (bpd) condensate. It is worth adding here this is third discovery for PPL in the last three months. Considering this an analyst at JS research Syed Atif Zafar estimated that cumulative annualised earnings impact will be Rs 2 per share on accord of all three. Earlier, in April 2013, Eni Pakistan in a joint venture with the PPL (having 33 percent stake) and Kufpe made a new discovery of the gas reservoirs in the Kirthar Fold belt through Lundali-I well located in the Sukhpur block, 270 kilometres (kms) north of Karachi. During the production testing gas flowed at 33 million cubic feet per day highlighting an excellent potential for the future for energy needs of the country. Also, in May 2013, PPL announced another gas and condensate discovery over its exploration well Wafiq X-1 in district Sanghar, Sindh. PPL operator of the block 2568-18 (Gambat South) with 65 percent working interest (WI) along with its joint venture partners Government Holdings (Private) Limited and Asia Resources Oil Limited with 25 percent and 10 percent WI, respectively, had successfully hit gas reserves in its exploratory well Wafiq X-1 at Gambat South Block. Meanwhile, severe energy crisis in the country and push from the government brought needed sprint into the drilling activity in FY 2012-13 as 92 percent of the targets were met in 11 months of FY 2012-13. Its pertinent to note, merely two-third of the drilling targets were met in the preceding three years. Against the annual target of 91 wells, 84 wells were spud during the 11 months FY 2012-13, including 30 exploratory wells. Oil and Gas Development Company (OGDC) spud five wells while United Energy Pakistan Limited raced away with 16 new efforts. During the period under review, 13 discoveries were made (including one from six carryover wells from last year) with Badhra North (OGDCs 20 percent stake) being quoted to have significant reserve size.
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30-Jun-13