KARACHI: MOL, the operator of Tal block in the Khyber Pakhtunkhwa, has encountered hydrocarbons in development well Makori East-5, Pakistan Oilfields Limited that has pre-commerciality working interest of 21 per cent in Tal block stated in a stock filing on Monday.

Other stakeholders include OGDC and Pakistan Petroleum with 28pc each. Tal block assumes significance in the oil and gas exploration and production (E&P) sector as it accounts for 23pc (20,000 barrels per day) of oil and 7pc (283mmcfd) of the country’s gas production.

Regarding the latest discovery, POL said on Monday that the well has been completed in Lockhart, Hung and Lumshiwal formation.

After stimulation through acid job, the well has tested 2,836 barrels per day of condensate, 19.26 mmscfd of gas per day with 121 barrels per day of water at 40/64” fixed choke size at the flowing wellhead pressure of 2,718 psi. The well is currently under cleaning phase. Production from the well is expected to start from September 2016.

E&P sector analysts at Topline Securities observed that the new find was in addition to the existing production of around 14,000bpd of oil, which accounts for around 70pc of Tal block and 80mmcfd of gas from the Makori East field.

Based on average price of Arab Light Crude at $44/bbl for FY17, Topline expects per share annualised impact on POL, PPL and OGDC at Rs2.60; Re0.40 and Rs 0.20, respectively.

Analysts at Invest & Finance Securities Limited observed that the Makori East-5, development well was spud on Sept 8, 2015 with initial drilling target depth of 5,060 meters. The completion of the well was expected in April 2016, but was delayed by over two months, due to slow pace of exploration activities backed by low oil prices.

Published in Dawn, July 12th, 2016