POL discovers oil in Khaur, North Punjab

KARACHI: Pakistan Oilfields Limited (POL) has successfully discovered hydrocarbons at Khaur North in their Khaur D&P Lease area in which the company has a 100 per cent stake, a notice of the Pakistan Stock Exchange (PSX) website said here on Thursday.

The well has been drilled to its target depth of 14,586ft in Amb formation making it a relatively shallow well, flowing at the pressure of 776-1090psi.

Initial testing suggests flows of 502bpd of oil and 1.4mmcfd of gas. However, the well has also flowed 277bpd of water which could affect the crude oil production.

For POL, an analyst of Taurus Securities estimates the production flows to have an annualized earnings impact of Rs2.88/share at $70/bbl. of crude oil and PKR/USD parity of 129.

The notice also mentioned that the actual flows may differ than the initial results, suggest a cautionary approach by the company after experiencing lower than expected flows in its major discovery of Jhandial well.

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