Mari Petroleum Company Limited (MPCL) has announced an investment of up to Rs 2.5 billion in its subsidiary Mari Mining Company (Pvt) Ltd (MMC) by way of equity injection.
“The Board of Directors of Mari Petroleum Company Limited (“MPCL”) in its meeting held on April 26, 2024, has approved an investment of up to Rs. 2.5 billion by MPCL in MMC by way of equity injection,” MPCL said in a notice sent to the Pakistan Stock Exchange (PSX) on Modany.
The investment will be made in tranches spread over two years by subscribing to the right issue of Mari Mining Company shares, read the notice.
Mari Mining Company (Pvt) Ltd is a wholly-owned subsidiary of MPCL, which was established in July 2023 to undertake mineral mining projects in Pakistan and to contribute to the growth of the mineral mining sector of the country.
On April 22, Mari Petroleum announced an oil discovery from its exploratory efforts at Shawal-l well, drilled in Mari Development and Production Lease (D&PL), located in Sindh Province.
Shawal-l well was spud in on January 27, 2024, and successfully drilled down to a total depth of 1,136 meters into the Ghazij Formation.
During the testing, the well produced 1,040 barrels of crude oil of ~30 degrees API oil with 12% Basic Sediment & Water (BS&W) along with 2.5 million standard cubic feet per day (MMSCFD) of associated gas at wellhead flowing pressure (WHFP) of953 pounds per square inch (Psi) at 32/64 inch choke size.
This is the first-ever oil discovery in Mari D&PL, which has been in gas production since 1967. MPCL is the operator of Mari D&PL with 100% working interest.
