ISLAMABAD, June 3: The government on Monday granted a petroleum exploration licence to the joint venture of Petroleum Exploration (Pvt) Limited (95%) and Government Holding (Pvt) Limited (5%) over Block No 2769-9 (Mirpur Mathelo), covering an area of 1030.66 square kilometres in Zone-III in Sukkur and Khairpur districts.

An official statement issued here said that the area had a high potential of producing gaseous hydrocarbons from shallow reservoirs like Sui Main Limestone, Sui Upper Limestone and Habib Rahi Limestone of Eocene Age. Goru Sands of oretaceous age can also be considered as a secondary reservoir.

PEL is a local company established in 1994, and since then it is engaged in exploration and production activities. At Present PEL is the operator of Kandra and Ghauspur blocks. Badar Gas Mining lease in Ghauspur block was granted to them in March 2002, which will supply 16 mmscfd of gas to SNGPL during the third quarter of 2003.

PEL is also a working interest owner in Block 22, where gas has been discovered in Sadiq, Hasan and Hamza wells and on Extended Well Test Basis gas is being produced from Hasan gas field since December 2000.

In Mirpur Mathelo Block, the joint venture intends to purchase Seismic Data, Geological and Geophysical Studies in the first year, Reprocessing of Existing Seismic Data or acquisition of 50 line km of Seismic Data in the second year and One Exploratory Well up to a depth of 1,200 meters or SML, whichever is encountered earlier, will be drilled in the third year.

The licences and the petroleum concession agreements were signed by M. Abdullah Yusuf, secretary Petroleum and Natural Resources on behalf of the President of Pakistan; G.A. Sabri, director general, Petroleum Concessions; Zaheeruddin, chief executive, PEL; and M. Mansoor Zubair on behalf of Government Holdings (Pvt) Limited.