MOL Plc. announces a new commercial discovery from the MOL operated exploration well Mardan Khel-1 in the TAL Block. In addition, MOL Plc. hereby informs the capital market participants that it has signed a farm-in agreement for the DG Khan block in Pakistan. MOL is acquiring a 30% non-operating interest from Pakistan Oil Fields Limited (“POL”) in the block.
MOL has a well-established, proven track record and successful presence in the country with five blocks and over 15 years of operation. As the operating shareholder of the TAL Block, MOL is currently responsible for over 70 thousand boepd (kboepd) gross production.
Mardan Khel-1 was drilled as an exploration well in TAL Block, located in the Khyber Pakhtunkhwa Province. It was spudded on September 17, 2014 and the well reached target depth of 4,912 meters on February 17, 2015.
The well tested four formations and all flowed with high volumes of gas and condensate. The two best tested zones (Lumshiwal and Lockhart) yielded 4,300 boepd gas along with 2,100 bpd condensate and respectively 4,000 boepd gas along with 1,840 bpd condensate. The well will be completed as a producer and tied-in to the Makori Central Processing Facility. The current total production capacity of the facilities in the Tal block is 80 kboepd gas and 37 kboepd of liquids per day. This capacity is sufficient to integrate the new well. MOL intends to carry out an appraisal plan including additional wells on the Eastern and Western parts of the structure. Our partners in the JV consortium are OGDC (30%), PPL (30%), POL (25%) and GHPL (5%).
Moreover, MOL Pakistan Oil & Gas Co. B.V. has signed a farm-in agreement for the DG Khan block where MOL is acquiring a 30% non-operating interest from Pakistan Oil Fields Limited (“POL”) in the block. POL is besides in the TAL block also our partner in the MOL-operated Margala and Margala-North blocksThe DG Khan Block is a promising gas and condensate exploration opportunity in the provinces of Punjab and Balochistan. After MOL’s farm-in, the block will be operated by POL with a 70% working interest. The consortium intends to acquire seismic data this year followed by drilling of one exploration well in 2017. The transaction is subject to the approval of the Pakistani government.
Mr. Alexander Dodds, MOL Group E&P, Executive Vice President commented:
“MOL Group is extremely pleased to announce its seventh discovery in TAL Block, which we have operated since 1999. MOL Pakistan has a successful track record in the TAL Block and we are grateful to our partners for their continued support and confidence in our capabilities to operate within the JV. Pakistan is a promising and prospective country with significant remaining undeveloped resources and reserves, and MOL Group remains committed to investing in Pakistan’s oil and gas sector as our recent farm-in agreement and continued investment in the TAL block demonstrate.”
Mr. Akos Grosz, CFA, Managing Director of MOL Pakistan added:
“MOL is committed to help alleviate the energy deficits of Pakistan by efficient exploration and production enhancement through successful application of cutting-edge technologies”.