ISLAMABAD: New reserves of gas and condensate have been found in Sindh’s Sanghar district.

The state-run Pakistan Petroleum Limited (PPL) made the announcement on Monday after regulatory approval by the federal government.

The PPL, operator of Block 2568-18 (Gambat South) in Sanghar district with 65 per cent working interest, said its exploration well Sharf X-1 had found the new reserves.

The other partners in the joint venture in the block are Government Holdings Private Limited with 25 per cent share and Asia Resources Oil Limited with 10pc share.

This is the third discovery of gas and condensate reserves in this block after Wafiq X-1 and Shahdad X-1.

Also read: Gas reserves found in Sujawal

Exploration well Sharf X-1 was spud on April 18 this year and reached a depth of 3,730 metres on July 6. Based on wire line logs, potential hydrocarbon bearing zones were identified which are currently under testing.

“Initial testing in one zone of the Massive Sand of Lower Goru Formation flowed 42.0 MMscfd (million standard cubic feet per day) of gas along with 199 barrel per day condensate at 64/64” choke size, thus confirming the presence of commercial quantities of natural gas and condensate at Sharf X-1,” the company said.

The PPL said it had identified two additional zones that would be tested later, resulting in an expected cumulative production of 60 MMscfd. This translates into approximately 7,400 barrels per day in oil equivalent, valued in foreign exchange at $750,000 per day.

The well is being flowed at different choke sizes to measure the gas flow rates. The actual flow potential of the well will be determined after completion of testing.

This discovery would add hydrocarbon reserves and also reduce the gap between supply and demand of oil and gas amid persisting energy shortages.

Published in Dawn, Aug 5th, 2014