KARACHI: Pakistan Petroleum Limited (PPL) has announced discovery of hydrocarbons from exploratory well Adam West X-1 in Hala Block.

In order to comply with material information provision in terms of section 15D(1) of the Securities and Exchange Ordinance, 1969 and clause (xx) of the Code of Corporate Governance, the company secretary Saqib Ahmed disclosed: “This is to inform that PPL, operator of Hala Exploration Licence (having 65 per cent working interest) has discovered hydrocarbon from its exploratory well Adam West X-1, located in district Matiari, Sindh”.

The PPL stated that Adam West X-1 well was drilled to test the potential of sands of Lower Goru Formation.

“During testing, the well flowed 18.6 MMscfd gas along with 31 STBbl/d condensate at 32/64inch choke size”, the company secretary said and asserted that Adam West X-1 was the second discovery made by PPL in Hala Block.

Asad I.Siddiqui, Senior Investment Analyst at AKD Securities worked out that the discovery would augment PPL’s bottom-line by Rs594 million, translating into earnings per share (eps) at Re0.30, upon successful commissioning of the project.

Analyst Hassan Amin at brokerage Summit Capital thought that the discovery would have an annualised eps impact of Re0.45 per share on PPL.

Published in Dawn, September 16th, 2014