Hydrocarbon reserves have been found by Pakistan Oilfields Limited (POL), an oil and gas exploration company, at its Jhandial-03 well in the Attock district.
The listed company, whose ultimate parent is Coral Holding Limited and which is a subsidiary of Attock Oil business Limited, UK, disclosed the development in a notice it sent to the Pakistan Stock Exchange (PSX) on Monday.
In the announcement, it was said that significant quantity of hydrocarbons has been encountered from the Jhandial-03 well drilled in the Ikhlas block of Pakistan Oilfields Limited located in Attock District.
According to the company, on October 12, 2023, the Jhandial-03 well began drilling. It was drilled all the way down to 17,778 feet in the base Lockhart Formation.
The announcement added, “The goal of the Jhandial-03 well was to evaluate the hydrocarbons that have already been found in the Sakesar formation (Eocene) and to investigate the potential of deeper Lockhart and Patala formations (Paleocene).”
It disclosed the flow rates at various choke sizes and the fact that the well in the Sakesar formation is currently complete.
The well produced 6.77-767 barrels of oil per day (bopd) and 7.4-10.2 million cubic feet of gas per day (mmcfd), according to hydrocarbon flows measurements.
With 80% working interest, Pakistan Oilfields Limited is the operator of the Ikhlas block, and Attock Oil Company (AOC) has 20% working interest.
According to a report from Topline Securities, “the annualised impact on earnings is around Rs10 per share, 7% of FY25 earnings.”
Read more: PPL discovers gas reservoir at Latif block in Sindh’s Khairpur district
POL, a public limited company that was established in Pakistan, is primarily involved in the exploration, drilling, and extraction of gas and crude oil within the country. Its operations encompass petroleum transmission as well as the commercialization of liquefied petroleum gas under the POLGAS brand.
This find could significantly impact Pakistan’s energy sector.
The recent discovery of oil and gas by Pakistan Oilfields Limited (POL) could have several implications for Pakistan’s economy:
- Energy Security:
Increased domestic production of oil and gas can enhance energy security by reducing reliance on imports. This, in turn, may stabilize energy prices and mitigate supply disruptions.
- Foreign Exchange:
Exporting oil and gas can contribute to foreign exchange reserves, strengthening Pakistan’s economic position in international markets.
- Revenue Generation:
The sale of oil and gas from the newly discovered reserves can generate significant revenue for the government. This revenue can be used for public infrastructure, social programs, and development projects.
- Industrial Growth:
Reliable energy supply supports industrial growth, leading to increased manufacturing and economic diversification.
- Investment Attraction:
A major discovery often attracts foreign and domestic investment in the energy sector. Companies may invest in infrastructure development, technology, and exploration activities.
However, it’s essential to manage these resources sustainably, address environmental concerns, and ensure equitable distribution of benefits to maximize their positive impact on Pakistan’s economy .