Pakistan Petroleum Limited (PPL) made an oil and gas discovery at exploratory well Yasar X-1 located in Kotri block (2468-12) in Sujawal district, Sindh.
“Initial testing in the upper sand of Lower Goru Formation showed a flow of 3.2 mmscfd (million standard cubic feet per day) of gas and 475 barrels per day of condensate…confirming the presence of commercial quantities of hydrocarbons,” the company said in a statement issued to the Pakistan Stock Exchange (PSX) on Monday.
“Actual flow potential of the well will be determined after completion of the test,” it said. PPL holds 100% working interest in the block and remains its sole operator as well. Its share price improved 0.43% or Rs0.92 to Rs213.37 with 372,700 shares changing hands at the PSX. “Given production flows will have an annualised impact of Rs0.35 per share on PPL’s earnings at $70 per barrel of crude oil and rupee-dollar parity of Rs125 to the US dollar,” Taurus Securities said in a commentary to its clients. To recall, the company’s first discovery in the area covered by the Kotri exploration licence was in Kotri X-1 well in 2016, which only provided initial gas flow of 3.4 mmcfd, it said.
“According to our calculation, the impact on annualized earnings per share of this discovery is around Rs0.55,” Sherman Securities estimated.
Courtesy: The Express Tribune