Islamabad       -       OGDCL has said that the news of discovery of Shale hydrocarbons is factually incorrect as no Shale well has been drilled by the company so far.

OGDCL is however working on a Shale Pilot Project which includes drilling of Shale well at future date, said a spokesman of the company here.

According the spokesman Pakistan’s estimated natural gas demand is about 7-8 BCFD out of which less than 4 BCFD is being produced locally. There is 50 per cent of Gas shortfall in the energy mix of the country. Successful exploitation of shale gas may provide Pakistan with a sustainable supply of natural gas/oil (against EIA estimated recoverable gas resources).

According to EIA Shale Gas Assessment Report 2015 (USA); Pakistan has around 105 Tcf of recoverable shale gas and 9.1 Billion bbls of recoverable shale oil resources. However the resources are not booked as “reserves” and need to be further rationalised through additional technical information regarding the Shale Reservoir.

OGDCL conducted Shale Gas Study in Indus Basin through M/s Weatherford, USA. This study used available data comprising petrophysical, geological, geophysical, geochemical, geomechanical and reservoir etc. of over 117 wells drilled across the Indus Basin. The study shortlisted priority areas and provided geo-modeling, well design for pilot vertical and horizontal sections along with frac design, simulated production profile and tentative cost estimates.

In the light of study, OGDCL is planning to drill its first ever-dedicated Shale Gas Well, KUC-01 mainly to prove the concept that the Sembar Shales can also be exploited as Hydrocarbon Reservoir and Producer. The major focus of this experimental effort is not on the economics of the well but on acquiring first hand data to bridge data gaps regarding the frackability and producibility of the Sembar Shales. KUC#01 being drilled as first of its type and due to unexpected operational complications, the estimated chance of success (COS) for commercial hydrocarbon production at this point in time is very low (10%).

KUC#01 is an experimental pilot project which comprises a vertical or near vertical hole to be drilled down to top of Chiltan Formation. More value and focus at KUC#01 is attached to data acquisition rather than commercial objectives. However it will provide a wealth of data regarding behavior of Sembar Shales with respect to its reservoir and completion quality, producibility, test of available technology and equipment etc. The shale project is likely to help in the formulation of Shale Gas Policy and further development scheme for Shale Gas exploitation. Sembar Formation will be extensively cored and logged with all possible analytical tests. Based on these results, the sweet spots will be delineated and data-fracked followed by main-fracks (Rigless). Contingent upon evaluation of data and encouraging results of hydraulic fracturing in vertical pilot hole, 800m horizontal (lateral) hole will be drilled in the best sweet spot with a number of hydraulic frack stages planned in this section for optimised production.