PPL discovers hydrocarbon reserves in Sujawal

Pakistan Petroleum Limited (PPL), an oil and gas exploration firm, has discovered hydrocarbon reserves from Pateji X-1 well, located in Sujawal district, Sindh.

The E&P, a key supplier of natural gas in the country, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“We are pleased to disclose that a gas/condensate discovery has been made from exploration well Pateji X-1, Shah Bandar block,” read the notice.

PPL shared that the block, located in Sindh, is operated by the company with 63% working interest along with its joint venture partners, Mari Petroleum Company Limited (MARI), Sindh Energy Holding Company Limited (SEHCL) and Government Holdings (Private) Limited (GHPL), each with working interests of 32%, 2.5% and 2.5%, respectively.

“This is the third consecutive discovery in the Shah Bandar block by the company,” PPL informed.

PPL disclosed that the well was drilled and tested by utilizing indigenous expertise.

“After rigorous internal G&G (geological and geophysical) evaluation and deliberations, the exploration well Pateji X-1 was spudded on 11 October, 2024 and drilled down to 2,475 meters (measured depth) to test the hydrocarbon potential of upper sands of lower goru formation.

“Hydrocarbon bearing zones were identified based on the drilling results and acquired wireline logs data.

“During testing, the well flowed at the rate of 11.7 million standard cubic feet per day (mmscfd) of gas and 198 barrels per day of condensate against wellhead flowing pressure (WHFP) 2,578 psig at 32/64” choke from Lower Goru Upper Sands (D-Sand),“ read the notice.

PPL was of the view that the latest discovery would add additional hydrocarbon reserves, allow the energy sector to reduce the current energy crisis in the country and would also save significant foreign exchange for Pakistan through indigenous hydrocarbon production.

Last month, the E&P announced the commencement of hydrocarbon production from a new development well, Adhi South-9 well, located in the Pothwar region, Punjab.

As per the company’s latest financial results, PPL saw its profit-after-tax (PAT) drop nearly 24% to clock in at Rs22.69 billion for the quarter ended September 30, 2024.