MARI successfully drills another appraisal well in Sindh

Mari Petroleum Company Limited (MARI), one of Pakistan’s largest energy and exploration companies, has successfully drilled and tested another appraisal well in the Mari Ghazij formation located in Mari Development and Production Lease (D&PL), Sindh.

The company, which is an operator of Mari D&PL with 100% working interest, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“MARI has successfully drilled and tested the third appraisal well in the Ghazij formation in the Mari D&PL,” read the notice.

“The well was spudded in on February 15,2024, and drilled down to a depth of 1,483 meters. The post-acid gas flow rate from the well was 10.5 million standard cubic feet per day (MMSCFD) with a wellhead flowing pressure (WHFP) of 490 pounds per square inch (Psi) at 64/64-inch choke size,” MARI said.

The company informed that the well shall be put on production in due course after completion of requisite regulatory formalities.

“The company is also preparing a field development plan for submission to relevant regulatory authority for approval,” it added.

“We estimate the additional gas flow to have an annualised earnings impact of Rs16.98/share on MARI,” said Arif Habib Limited (AHL), a brokerage house, in a note.

Earlier this year, MARI successfully drilled and tested appraisal well at Mari Ghazij-l.

Last year in November, the company successfully commenced gas production from its appraisal well Mari Ghazij-l.

By operating the country’s largest gas reservoir at Mari Gas Field, Daharki, Sindh, MARI is the second largest producer of natural gas in the country.

The company is an integrated oil and gas exploration and production company and around 70% exploration success rate, which is much higher than industry averages of around 33% national and 14% international.

MARI’s key customers include fertilizer manufacturers, power generation companies, gas distribution companies; and refineries.