Karachi, July 15, 2024 – Pakistan Oilfields Limited (POL), a leading oil and gas exploration company, has announced a significant discovery of hydrocarbon reserves at its Jhandial-03 well located in Attock district. This promising development comes after drilling commenced in October 2023.
Significant Hydrocarbon Reserves Found
Pakistan Oilfields Limited informed the Pakistan Stock Exchange (PSX) that the Jhandial-03 well, located within the Ikhlas block, encountered substantial quantities of hydrocarbons. The well was drilled to a depth of 17,778 feet, reaching the base Lockhart Formation.
Dual Objective Achieved
Pakistan Oilfields Limited had a two-fold strategy for this well. First, they aimed to appraise previously discovered hydrocarbons within the Sakesar formation (Eocene age). Second, they sought to explore the potential of deeper formations, specifically the Lockhart and Patala formations (Paleocene age).
Initial Production Details
The well has been successfully completed in the Sakesar formation, and initial flow rates are encouraging. Production testing revealed flows ranging from 677 to 767 barrels of oil per day (bopd) and 7.4 to 10.2 million cubic feet per day (mmcfd) of natural gas, depending on the choke size used.
Fast-Track to Production
Pakistan Oilfields Limited anticipates connecting the Jhandial-03 well to the production line within the next three weeks, allowing them to begin commercial production and contribute to Pakistan’s energy needs.
Project Partnership and Economic Impact
Pakistan Oilfields Limited holds an 80% working interest in the Ikhlas block, while The Attock Oil Company (AOC) holds the remaining 20%. Analysts estimate the discovery could generate an annualized earnings impact of around Rs. 10 per share, translating to roughly 7% of the company’s projected FY25 earnings.
Company Background
Incorporated in Pakistan, Pakistan Oilfields Limited is a major player in the country’s oil and gas sector. Their core operations include exploration, drilling, and production of crude oil and natural gas. Additionally, they market Liquefied Petroleum Gas (LPG) under the brand name POLGAS and manage petroleum transmission infrastructure.
This discovery by Pakistan Oilfields is a positive development for Pakistan’s energy security and could potentially contribute to the country’s economic growth.