Pakistan Oilfields Limited (POL), an oil and gas exploration company, has announced the discovery of hydrocarbon reserves at its Razgir-1 exploratory well located in Kohat district, Khyber Pakhtunkhwa.
The listed company, which is a subsidiary of Attock Oil Company Limited, UK and its ultimate parent is Coral Holding Limited, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“As per information received from MOL, the operator of TAL block, hydrocarbons have been discovered in exploratory well Razgir-1, which was spudded on January 09, 2024 and has been drilled down to the depth of 3,950 meter,” read the notice.
Pakistan Oilfields discovers oil & gas reserves in Attock District
It is pertinent to mention that MOL Group, is a Hungarian multinational oil and gas company headquartered in Budapest, Hungary.
Meanwhile, POL in its notice shared that as a result of Drill Stem Test (DST) conducted at the well to test the potential of Lumshiwal formation, the well has tested 20 MMscf of gas per day and 250 barrels per day of condensate at 40/64“ fixed choke size at the flowing wellhead pressure of 2,348 psi.
The company informed that the testing operations are still in progress to ascertain the true potential of the well.
“A DST is a procedure for isolating and testing the surrounding geological formations through the drill stem. The test is a measurement of pressure behavior at the drill stem and is a way to obtain important fluid sampling information and to establish the probability of commercial production,” POL informed.
“Accordingly, it should be borne in mind that actual production may differ significantly from the test results,” it added.
In TAL block Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL) and POL have a stake of 27.8%, 27.8%, and 21.1%, respectively, said Arif Habib Limited (AHL) in a note.
“We estimate the discovery to have an annualized earnings impact of Rs3.13/share, Re0.43/share, and Re0.27/share on POL, PPL, and OGDC, respectively,” AHL added.
Incorporated in Pakistan as a public limited company, POL is principally engaged in exploration, drilling and production of crude oil and gas in Pakistan. Its activities also include marketing of liquefied petroleum gas under the brand name POLGAS and transmission of petroleum.