Pakistan’s oil & gas companies announce significant hydrocarbon find in Khyber Pakhtunkhwa

Pakistan’s Exploration and Production (E&P) companies, Pakistan Oilfields Ltd (POL), Oil & Gas Development Company Ltd (OGDC), and Pakistan Petroleum Ltd (PPL), have all announced further testing results from the newly discovered Razgir-1 exploratory well in the Kawagarh formation, located in the Kohat district of Khyber Pakhtunkhwa.

The listed companies shared the development in their respective notices to the Pakistan Stock Exchange (PSX) on Tuesday.

“We are pleased to announce the discovery of gas condensate from Kawagarh-1 formation in Razgir-1 exploratory well, located in district Kohat, Khyber Pakhtunkhwa,” said OGDC in its notice.

The TAL joint venture comprises of OGDCL (30% working interest), MOL Pakistan Oil & Gas Co. B.V. (the Operator) (10%), PPL (30%), POL (25%), and Government Holdings Private Limited (GHPL) (5%).

It is pertinent to mention that MOL Group is a multinational oil and gas company headquartered in Budapest, Hungary.

According to the E&P notice: “The well was spudded-in on January 09, 2024 and has been successfully drilled down to the depth of 3773.98m TVD.”

“Based on interpretation results of wireline logs data, Kawagarh-1 Formation (exploratory target) was tested successfully at rate of around 16.4 million standard cubic feet per day (mmscfd) gas and 159 barrels per day (bpd) of condensate at choke size 40/64” at wellhead flowing pressure (whfp) of 1,874 Pounds per square inch (Psi),“ said OGDCL.

The company believes that this latest discovery has de-risked further exploration in the TAL Block, opening new opportunities.

“The said discovery will help to enhance indigenous hydrocarbons supply of the country and also add to the hydrocarbon reserves base,” it added.

Meanwhile, POL, in its notice, informed that the testing operations are still in progress to ascertain the true potential of the well.

“A Drill Stem Test (DST) is a procedure for isolating and testing the surrounding geological formations through the drill stem.

“The test is a measurement of pressure behavior at the drill stem and is a way to obtain important fluid sampling information and to establish the probability of commercial production. Accordingly, it should be borne in mind that actual production may differ significantly from the test results,” it said.

Arif Habib Limited (AHL), a brokerage house, estimate the flows to have an “annualised earnings impact of Rs2.40/share, Re0.33/share, and Re0.21/share on POL, PPL, and OGDC, respectively”.

Last month, Pakistan Oilfields Limited (POL) announced the discovery of hydrocarbon reserves at its Razgir-1 exploratory well.