Pakistan Petroleum Limited (PPL), a key supplier of natural gas in the county, has successfully drilled and tested hydrocarbon reserves in Adam-2 well, located in Adam D&PL Area, Hala Block, Sindh.

The E&P shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“We wish to inform that as part of the field development activities in the Adam D&PL area, Hala JV has successfully drilled and tested Adam-2 well,” read the notice.

Hala JV is a joint venture between PPL and Mari Petroleum Company Limited (MPCL), with 65% and 35% working interest, respectively, and PPL as operator. With an area of about 395 square kilometres, the block straddles the Sanghar and Matiari districts in Sindh.

PPL said that Adam-2 well was a challenging development with associated risks and uncertainties.

“The well was drilled down to a depth of 3,421 meters and tested at approximately 6 million standard cubic feet per day (MMSCFD) gas and 450 barrels per day (BPD) condensate with a Wellhead Flowing Pressure (WHFP) of approximately 740 pounds per square inch (Psi) at 32/64-inch choke size,” read the notice.

PPL said that after tie-in, the gas will be processed at Hala Gas Processing Facility for onward supply to Sui Southern Gas Company Limited (SSGCL).

“The development well will add hydrocarbon reserves, enable the energy sector to reduce the gap between the supply and demand of oil and gas during the current energy crisis in the country and will save significant foreign exchange for the country,” read the notice.

Last week, the Board of Directors (BoD) of PPL approved, in-principle, funding of the Government of Balochistan’s (GoB) share of capital contribution in the BLZ Project.

“PPL shall arrange funding, from its cashflows, for GoB’s capital contribution through a financing arrangement. Debt servicing would be through GoB’s share of project cashflows,” read the notice back then.