KARACHI: Pakistan Petroleum Limited (PPL) has announced discovery of fresh oil deposits in exploratory well in Talangan X-1 located in Chakwal district, Punjab.
According to PPL, an oil discovery has been made from an exploratory well in Karsal Block (3372-18) , Talagang X-1, located at District Chakwal, Punjab.
The oil and gas exploration company has remained the operator of Karsal block where Talangan X-1 is located with 100% working interest.
The well was drilled on May 24, 2018 and a depth of 3,675 metres was reached inside Nammal formation.
“Based on good oil/gas show during core and drilling, a Bare Foot Drill Stem Test was conducted in the carbonates of Chorgali – Sakesar formation of Eocene age,” PPL says.
“Initial testing in Sakesar formation showed a flow of 313 barrels per day of hydrocarbons together with a minor immeasurable quantity of gas,” PPL Company Secretary Shahana Ahmed Ali said in a notification to the Pakistan Stock Exchange (PSX) on Friday.
“The well is being drilled further to test deeper formations and its complete potential will be determined after evaluating and testing other potential hydrocarbon-bearing zones in the well,” the secretary added.
PPL’s share price dropped 2.39%, or Rs4.99, to close at Rs203.90 with 961,500 shares changing hands in a bearish session at the PSX where the benchmark KSE-100 index fell 1%, or 411.62 points, to close at 40,854.77 points.
In August last year, Caretaker Minister for Maritime and Foreign Affairs Abdullah Hussain Haroon had said a well-known multinational oil and gas firm in the United States ‘Exxon Mobil’ was on the point of exploring huge oil reserves near the Pakistan-Iran border, which could reportedly be bigger than the Kuwaiti reserves.
If the oil deposits are discovered as expected, Pakistan will be among top the 10 oil-producing countries ahead of Kuwait in sixth position, it was reported.
Kuwait’s oil reserves make up 8.4 percent of the oil reserves in the world. Kuwait claims to hold about 101.50 billion barrels, including half of five billion barrels in the Saudi-Kuwaiti neutral zone which Kuwait shares with Saudi Arabia.
The minister said Exxon Mobil had so far drilled up to 5,000 meters close to the Iranian border and is optimistic about the oil find.
According to current estimates, 81.89 percent of the world’s proven oil reserves are located in OPEC member countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 65.36 percent of the OPEC total, latest OPEC data shows.