LAHORE - Pakistan Oil fields Limited (POL) has discovered one of the largest oil and gas reserves from its Jhandial well (Punjab) in last five years, as per announcement at PSX.
Jhandial well is located in Ikhlas Block in Northern Potwar, about 83 kilometers Southwest of Islamabad in District Attock said an official.
“‘Jhandial-X1’ well was drilled down to the depth of 18,497 feet (5637 meters). During production testing, significant amount of hydrocarbons (oil and gas) were encountered in Sakessar, Nammal and Patala formations with estimated flows of up to 2.5k bopd and 21mmcfd of gas. “Although the company is currently evaluating sustainable levels of oil and gas flow, our channel checks suggest it will be 1600-1800bopd and 16-18mmcfd of gas. At this level, we estimate an annualised EPS impact of Rs7.5-8.5/share (15-17pc of FY18 earnings) with POL’s holding of 80 percent in Ikhlas Block,” the company stated.
This is indeed a significant discovery as it will lift POL’s oil production by up to 26 percent and gas production by up to 23 percent. The management expects the above discovery to start production in two weeks.
POL holds 80per cent share in the block whereas The Attock Oil Company (AOC) has a 20per cent share. The block is located in a prospective but geologically complex area surrounded by a number of significant oil discoveries.
The drilling of the deep exploratory well Jhandial-1 was proposed after acquisition and interpretation of recently acquired 3D seismic data.
The American Petroleum Institute (API) gravity of the oil is around 40x and the gas has a rich calorific value of 1,161 British Thermal Units per standard cubic feet of gas.
The gas composition analysis indicates that it contains about 86per cent methane, 7.2per cent ethane and 2.9per cent propane.
The well will be connected to the production line within two weeks and will gradually attain full potential.
Structurally, Jhandial is a thrusted anticline just north of the Dhurnal Oil field.
It has a closed area of about 15 square kilometers in the most likely case, with a thick net reservoir column from top of the Chorgali Formation (Eocene) to the base of the Paleocene Formation.
Preliminary initial estimated recoverable reserves of the field are in the range of at least 292 billion standard cubic feet of gas and 23 million barrels of oil.
The Jhandial discovery is expected to contribute to the country's energy sustainability while also having a positive impact on the future of exploratory efforts in the block and surrounding areas.
