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Thursday, October 16, 2014

New discoveries | PPL on the roll

 New findings: PPL on a roll, makes fourth discovery

The expected output from the (Kinza X-1) well will translate into approximately 2,100 barrels per day in oil equivalent and foreign exchange savings of $200,000 per day. PHOTO: KASHIF HUSSAIN/EXPRESS
Pakistan Petroleum Limited (PPL) has announced that it hit another petroleum reserve in the Gambat South Block, its fourth discovery in the particular lease, which is located in Sanghar district, Sindh.
The exploration well, Kinza X-1 was spud on July 28 this year and reached the final depth of 3,695 metres on September 13.
“Initial testing flowed 12 million cubic feet per day (mmcfd) of gas along with condensate, thereby confirming presence of commercial quantities,” the company said in a statement.
PPL is the operator of Gambat South block with 65% working interest along with its joint venture partners Government Holdings and Asia Resources Oil Limited, which holds 25% and 10% interest, respectively.
In the same block, it has already found three producing wells – Wafiq, Shahdad and Sharf.
“Based on wire line logs, potential hydrocarbon bearing zones were identified in the Massive Sand of Lower Goru Formation, which are under testing,” PPL said.
The expected output from the (Kinza X-1) well will translate into approximately 2,100 barrels per day in oil equivalent and foreign exchange savings of $200,000 per day, it said.
The well is being flowed at different choke sizes to measure gas flow rates and the actual flow potential will be determined after the completion of the test.
In August, the company announced discovering 42 mmcfd of gas in Gambat South, its third and biggest discovery in the block. At the time, PPL said it was expecting the production to go up to 60 mmcfd.
It made the first two discoveries in Gambat last year.
Last month, another producing well was discovered in the Hala block, located in Sanghar and Matiari districts, Sindh.
The company said the well could produce 18.6 mmcfd of gas and 31 bpd of condensate from exploratory well Adam West X-1.
Hala is a joint venture between PPL and Mari Petroleum Company Limited, with 65% and 35% working interest, respectively. It covers as area of about 395 square kilometres.
PPL currently produces 10 mmcfd of gas and 150 bpd of condensate from another well in the Hala block.
PPL, which has a portfolio of 47 exploration blocks, has been aggressively searching for new hydrocarbon finds since last year to compensate for the decrease in production from its established fields like Sui.
State-run PPL had earmarked Rs10 billion to be spent on exploration activities during the last fiscal year with most of the focus on Gambat South.
The company accounts for 22% of the country’s gas production. In the fiscal year 2013-14, PPL posted a profit of Rs51.41 billion, up 23% over the previous year.
It has been trying to cut the depletion rate of its fields by installing compressor plants and drilling more wells.
PPL’s six producing fields include Sui, Kandhkot, Adhi, Mazrani, Chachar and Hala, while it has working interest in eight partner-operated fields.
Published in The Express Tribune, October 15th, 2014.