POL plans to spud four wells in FY22

September 29, 2021 (MLN): Pakistan Oilfields Limited (POL) aims to spud four wells in FY22 which includes two exploratory wells (DGK-1 at DG Khan and Bandhak-1 at Kirthar South) and two development wells (Adhi South-5 and 6 at Adhi), the management of the company informed while holding a corporate briefing session with investors today.

The company is also planning to drill another well in 6-12 months after which the production from Jhandial (Ikhlas block) is expected to increase.

Apprising investors on the financial performance of the company during FY21, management said that the drop in oil and gas production by 1% and 3% YoY, respectively during the period kept the earnings growth in check.

To highlight, on a consolidated basis, POL posted a profit after tax (PAT) of Rs15.4 billion (EPS: Rs54.24) during FY21 i.e., around 6% higher than the profit after tax of Rs14.56bn (EPS: Rs51.23) reported in the same period last year (SPLY).

The Company’s share in production, including that from joint ventures, for the year under review averaged at 6,204 barrels per day (BPD) of crude, 78.34 million standard cubic feet per day (mmscfd) of gas,155.23 metric tonnes per day (MTD) of LPG, 1.17 MTD of Sulphur and 46 BPD of solvent oil.

With regards to Manikhel South well, the management informed that production from the well is on hold because the pricing on that well is yet to be finalized by the government. The company expects the well to be connected to the main production line during the ongoing fiscal year matter. The well has a production potential of 3,240 BPD of condensate and 16.12 mmcfd of gas.

In addition to this, management also apprised that the drilling of the new well Razgir in the TAL block may not take place this year due to issues particularly related to pricing.

“The Razgir well is scheduled for drilling, but there are certain issues, particularly pricing issues that may prevent drilling this year. Once the issues are resolved, the company will decide when to spud the well,” management said.

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