Dewan Salman Fibres Ltd (DSFL) has acquired 49 percent shareholding in Rally Energy Pakistan, a company having working interest in exploration business.
According to a letter issued by DSFL to Karachi Stock Exchange, the company has acquired 49 percent holding in Rally Energy Pakistan Ltd, a company incorporated in British Virgin Island which was previous wholly owned by Rally Energy Corporation, an independent Canadian petroleum exploration and production company, quoted at Canadian Stock Exchange.
Rally Energy Pakistan Ltd operates and holds 50 percent working interest in the Safed Koh Exploration Licence.
The Safed Koh Block is located some 200 km north-west of Multan City in Punjab. The Safed Koh Block covers 1213 square km and includes three large structures, namely Rodho. Afiband and Zindapir, and lies immediately adjacent to Dhodak Gas and Condensate Field.
Safed Koh joint venture is currently planing to re-enter the existing well at Rodho structure and the plan includes deepening of this well to explore the promising hydrocarbon potential of Lower Goru, Sembar and Chilton formations in the area.
As a consideration of acquisition of share holding in Rally Energy Pakistan Ltd, DSFL shall invest a maximum of $2 million in drilling operations on Rodho structure and for any investment over and above $2 million shall be contributed by all shareholders and working interest partners in accordance with their shareholding and working interest in the Petroleum Concession.
In this context, all necessary governmental approvals stand sanctioned by Director General Petroleum Concession on behalf of Government of Pakistan and only the approval of SBP is awaited.