KARACHI: The Pakistan Petroleum Limited (PPL) has announced that gas has been discovered at the exploratory well Rayyan-1 in Kirthar Block (2667-7), located in Dadu district, Sindh, which is operated by M/s Polish Oil and Gas Company, PKN ORLEN Pakistan Branch (POGC).
The Polish Oil and Gas Company has a 70 percent working interest along with its joint venture partner Pakistan Petroleum Limited (PPL) having a 30 percent working interest.
Rayyan-1 was spud in early December 2022 and drilled to the depth of approximately 2446 metres.
According to frac job which is a process to treat oil and gas wells in low-permeability reservoirs (shale gas and tight gas), the well flowed at the rate of 12.88mmcfd (million cubic feet per day) at the Wellhead Flowing Pressure of 3190 PSI.
Taking cue from producing wells in this block including Rehman and Rizq which were discovered before 2015 are mostly tight gas reservoirs with production cost usually higher than conventional wells.
“We expect wellhead pricing would be higher at $6.3 per mmbtu for Rayyan-1 well as well”, Farhan Mahmood at Sherman Securities said.
Given the fact that cost of the well is also relatively higher, this well will improve annualized earnings of PPL by Re 0.3 per share, he believes.
Copyright Business Recorder, 2023
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