ISLAMABAD: Pakistan Petroleum Limited (PPL), the country’s second largest oil and gas producer, on Friday announced discovery of another oil and natural gas reserve in Sanghar, Sindh.

This is the sixth discovery in the same exploration block and is estimated to produce 2,100 barrels per day of condensate and 11.05 million cubic feet per day (mmcfd) of natural gas —approximately valued at $282,000 per day or 4,030 barrels of oil equivalent.

The company said it had found new reserve at Faiz X-1 located in its Gambat South block.

Exploration well Faiz X-1 was spud on October 17, 2014 and reached final depth of 3,564 metres on December 1, 2014. Based on wire line logs, potential hydrocarbon bearing zones were identified in the Basal Sand of Lower Goru Formation, which are under testing.

“Initial testing flowed 2,100 barrels per day (bpd) condensate and 11.05 mmcfd gas at 40/64 inches choke size, thus confirming the presence of condensate and natural gas at Faiz X-1,” the company said.

It said the well was being flowed at different choke sizes to measure condensate and gas flow rates, following completion of which actual flow potential of the well will be determined.

Interestingly, it is the same well from where the company had earlier found 8.5mmcfd of gas and 115bpd of condensate in a different formation — Massive Sand of Lower Goru Formation.

With 65pc working interest, PPL is the operator of Gambat South Block with its joint venture partners Government Holdings (Private) Limited and Asia Resources Oil Limited with 25pc and 10pc interest respectively.

The cumulative gas production from all the six wells was expected 80mmscfd, translating into approximately 11,430bpd in oil equivalent, valued in foreign exchange at $1.1 million per day ($400 million a year).

Published in Dawn, December 27th, 2014