KARACHI: The Pakistan Petroleum Limited (PPL) discovered 3.4mmcfd gas from its Kotri X-1 exploratory well located in Sindh.
“The Kotri X-1 well was drilled to test the hydrocarbon potential of sands of Lower Goru Formation,” PPL said in a filing with the PSX on Friday.
The company stated that the well flowed good quality of gas at an average rate of 3.4mmcfd at flowing wellhead pressure of 608 psi.
The company has 100 per cent working interest in the field.
“Preliminary analyses of the test date suggest the discovery to be tight gas, however, further evaluation is required to determine the nature of discovery based on the geological, geophysical and engineering data collected during the drilling and testing of the well,” PPL said.
Commenting on the discovery, Mohammad Fawad Khan, head of research at KASB Securities told Dawn that it was relatively a small discovery.
Also it appears to be a tight gas reservoir, where the company might have to do further wok on ‘fracturing’ to produce commercial quantity of gas.
Shahbaz Ashraf and Waheed Rahmani, energy sector analysts at Arif Habib Limited, observed: “Being one of the blocks whereby PPL opted for Petroleum Policy 2012 (PPL12), the gas will be priced as per PP12.”
They, however, noted that since the preliminary flows suggested it to be tight gas, pricing could be different from PPL12.
“Expected production additions from Gambat (gas/oil 162mmcfd/2,865bpd) and Mardankhel (gas/oil/ 41mmcfd/3,440bpd) should boost company’s hydrocarbon additions.”
