Pakistan discovers new gas reserves in Sindh - thenews.com.pk
KARACHI: Huge reserves of natural gas have been discovered in Sindh as Pakistan struggles to overcome crippling energy crisis.
According to Geo News report, 39 million cubic feet gas reserves have been discovered during the drilling of wells in Sanghar. The report said 65 percent shares of the project are owned by the PPL.According to initial estimates, 106.8 million cubic feet natural gas would be produced.
70 percent of natural gas reserves in Pakistan are located in Sindh.
This discovery is not properly reported. How can they produce 106 million cubic feet when the reserves are 39 million cubic feet. I shall post the discovery news shortly.
PPL discovers gas in Sanghar
Staff Report
KARACHI: Pakistan Petroleum Limited (PPL) has announced a gas and condensate discovery over its exploration well Wafiq X-1 in district Sanghar Sindh province on Wednesday.
PPL operator of the block 2568-18 (Gambat South) with 65 percent working interest (WI) along with its joint venture partners Government Holdings (Private) Limited (GHPL) and Asia Resources Oil Limited (AROL) with 25 percent and 10 percent WI respectively, has successfully hit gas reserves in its exploratory well Wafiq X-1 at Gambat South Block.
Exploration well Wafiq X-1 was spud on February 17, 2013 and reached the final depth of 3,550 meters on May 21, 2013. Based on wire line logs several hydrocarbon bearing zones were identified which are under testing. The first test in the sands of Lower Goru Formation was flowed at 5.9 to 7.4 Million Standard Cubic Feet per Day (MMscfd) of gas along with 40 to 54 barrels per day (bbl/d) condensate at different choke sizes, thus confirming the presence of commercial quantities of natural gas and condensate at Wafiq X-The second test which is in progress was initially flowed 16.8 MMscfd of gas along with 144 bbl/d condensate at 32/64 choke.
PPL said remaining potential zones would also be tested and the actual total flow potential of this well will be determined after completion of all the tests. This discovery will add more hydrocarbon reserves and also reduce the gap between supply and demand of oil and gas during current energy crisis in the country.
BMA Capital Affan Ismail said the final gas flow might settle in the range of 18-22 mmcfd of gas.
He said the annualised incremental earnings impact of this discovery could be estimated at Re 0.8-1.1/share or 2.5 percent-3 percent of his FY 2013-14 Earnings per Share (EPS) estimates.
Positive outcome on another well Shahdad X-1 (drilling under progress) in the same block may further spark activity in the stock, said Ismail.
Ayub Ansari an analyst at AKD Securities said based on the initial flow rate, we estimated incremental annualised revenues of Rs 1,982 million (EPS impact of Re 0.64) for PPL. Various choke sizes (48/64, 36/64 and 24/64) were tested under DST-1 where we believed the actual flow rate could be different from the initial flow rate, Ansari added.
http://www.dailytimes.com.pk/default.asp?page=2013\06\20\story_20-6-2013_pg5_2
