ISLAMABAD, June 11: Hycarbex American Energy Inc (Hycarbex Inc), the operator of Yasin Block No 2768-7, has made a significant gas discovery, as a result of drilling and testing of exploratory Haseeb Well No 1. According to a press release issued here on Saturday, the discovery was made in the Yasin Block located just 9km from the Shikarpur city in Sindh.

Hycarbex Inc has an 85 per cent pre-commercial discovery interest. Other working interest owners are Techno Petroleum (Pvt) Limited (10 per cent) and Government Holdings (Pvt) Limited (five per cent).

Haseeb Well No 1 was drilled up to a total depth of 1,507 metres. On the basis of evaluation made through electric logs, geological and drilling data, the production testing was undertaken on April 27, 2005. As a result of testing, substantial quantity of gas flowed from Sui Main Limestone formation of Eocene age.

During a short duration test, it produced initially around 7.3 mmscfd of 805 BYU gas. The gas has very low carbon dioxide and water content. Currently, Hycarbex Inc is in the process of preparing evaluation/appraisal work programme for declaration of a commercial discovery.

The joint venture intends to develop this discovery on a fast track basis, which besides providing cash flow to the joint venture, would also result in substantial payments to the government by way of share in production, royalty and taxes, apart from other benefits. On the basis of preliminary estimates, the volumetric gas reserves are estimated to be in the range of 100 to 150 bcf, which will be confirmed by undertaking an appraisal programme.

The joint venture has also made a commitment to drill a new exploration well in the block during the third year of the initial period at an estimated expenditure of $1.6 million.

The drilling of this well will help in exploiting the hydrocarbon potential of Yasin block. Any additional success in the block would enable the joint venture to optimize the development and production of petroleum from the block.

Hycarbex Inc has been active in petroleum exploration in Pakistan since 1995, which includes drilling of four exploration wells and seismic acquisition in Jacobabad Concession previously held by the company. The present success in the Yasin block will provide impetus to the company to invest more in the upstream petroleum sector of Pakistan.