Pakistan Oilfields discovers hydrocarbon

KARACHI: Pakistan Oilfields Limited (POL) has announced a major hydrocarbon discovery at Ikhlas block, Attock district, where the company holds 80 percent stakes, while Attock Oil Company holds the remaining 20 percent stakes, a bourse filing said on Wednesday.

Gas flows from the well ranges between 16.5mmcfd to 21mmcfd coupled with expected oil production of 1,630bpd to 2,520bpd, it added. Besides, the well is also expected to produce 2.5MT of LPG/1mmcf of gas and the management has highlighted that the well will be connected to the production line within two weeks. Analysts said 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 discovery will have an annualised positive earnings per share (EPS) impact of Rs10/share and will raise the company's bottom-line by 20 percent. “We flag this as a major positive for POL for both quantitative and qualitative reasons given that the well is surrounded by various oil discoveries and raises expectations of further discoveries in the block,” said Faizan Ahmed at JS Global Capital.