The state-owned company hit a find of 56 million cubic feet per day (mmcfd) of gas in Matiari, Sindh.

This volume might not appear big in the overall context of gas consumption in Pakistan – 4,000 mmcfd – but it is still significant since many petroleum exploration companies have struggled to replace depleting gas fields with new finds.

New gas field discovered in Sindh

The Hatim X-1 well was spud in the Gambat South Block in October 8 and was drilled to the depth 3,800 meters on November 26 where tests were run to determine its potential.

Company officials say further drilling is expected to increase the gas output to 80 mmcfd. “We will drill the appraisal well in the next three months. We won’t be announcing that because it won’t be a discovery. But this is major find,” said an official.

This makes the discovery large enough to meet the need of Engro’s new fertilizer plant – the largest in the country – that has continuously faced shutdowns due to gas shortages.

Investors reacted to the news straightaway as PPL’s share price jumped from Rs106.71 to Rs110.95 by end of business even though the benchmark-100 index remained visibly under pressure. A total of 3.67 million shares changed hands on Tuesday.

PPL has drilled 11 wells so far in Gambat Block, which straddles across three districts of Sindh including Sanghar and Matiari. It has found hydrocarbons reserves in nine wells so far. In August last year PPL disclosed that Sharf X-1, another well in Gambat South, will produce 42 mmcfd with a potential to go up to 60 MMCFD.

Source: News