KARACHI: Mari Petroleum Company Ltd has successfully drilled a third horizontal development well, which has been tested at the rate of around 17 million standard cubic feet per day (mmscfd) of gas.

As opposed to a vertical well that’s drilled downwards, a horizontal one is drilled off a vertical borehole at an angle of at least 80 degrees.

Mari-124H is located within Habib Rahi Limestone Reservoir of Mari gas field in Sindh’s Daharki area, the company told investors on Monday.

“The well is part of the Mari Field Revitalisation Project aimed at better managing the delivery pressure, sustaining the gas production and optimal reserves recovery, leading to the arrest of the depletion in production,” it said.

The well was drilled to a total measured depth of 1,740 metres with a horizontal section length of around 750 metres. The well will be put on regular production immediately after releasing the drilling rig.

Mari Petroleum Company Ltd is also evaluating opportunities to drill additional horizontal wells in due course. It’s the operator of the Mari gas field with 100 per cent working interest.

The company noted in its latest financial accounts that production decline from smaller fields is one of its key challenges. The company is mitigating this challenge through effective production management and development activities in these fields.

“Efforts continue to enhance production through the application of advanced technologies to maintain a consistent hydrocarbon supply,” it said.

Its sales of gas from the Mari field totalled 802mmscfd in July-September, up 12pc from a year ago. After accounting for gas sales from other fields (16mmscfd), the cumulative year-on-year increase remained 10pc over the same period.

In rupee terms, the energy firm posted a net profit of Rs19.1bn in July-September, up 50pc from last year.

Becomes billion-dollar firm

Meanwhile, the company’s share price increased 4.9pc on Monday to Rs2,168.82 apiece. The rally propelled the firm’s market capitalisation, which is the value of its total shares, to over $1 billion.

According to Alpha Beta Core Ltd CEO Khurram Schehzad, Mari Petroleum Company Ltd became on Monday the seventh company listed on the Pakistan Stock Exchange (PSX) with a valuation of more than $1bn.

The other six companies that are worth more than $1bn are Oil and Gas Development Company Ltd ($1.9bn), Colgate-Palmolive Pakistan Ltd ($1.4bn), Nestle Pakistan Ltd ($1.4bn), Pakistan Petroleum Ltd ($1.1bn), Meezan Bank Ltd ($1.1bn) and Pakistan Tobacco Company Ltd ($1.1bn).

The benchmark of major companies has cumulatively added 24,600 points or 59pc since the beginning of 2023-24 over five months ago. Only two of the seven companies were part of the billion-dollar club at the beginning of the calendar year.

Companies expected to achieve the billion-dollar valuation in case of another 20pc rally in the shares market include Lucky Cement Ltd ($890 million), United Bank Ltd ($830m) and MCB Bank Ltd ($800m), said Mr Schehzad.

Published in Dawn, December 12th, 2023