MARI and OGDC announce discovery at Bannu West-1

As per the latest announcement by MARI, further hydrocarbon discovery has been made at Bannu West-1 at Bannu Block at North Wazirstan located in KPK Province. Previously, the company discovered 25mmcfd of gas and 300 bopd of oil at Lockhart Limestone Formation (before acid treatment), while 1.6 mmcfd of gas in Hangu Formation. After acid treatment at Lockhart Formation, the gas discovery size has increased to 50 mmcfd while the oil discovery size remains unchanged at 300bopd.

It is pertinent to note that this is the first-ever discovery in the North Wazirstan Region. In this block MARI is an operator with a 55% stake, while OGDC and ZPCL has 35% and 10% working interest, respectively. The well is expected to have an annualized impact of PKR 47.14/share and PKR 0.93/share on earnings of MARI and OGDC, respectively.

Furthermore, during the initial discovery at Bannu West, MARI approached SNGPL to lay off infrastructure/pipeline for connecting this gas field to the transmission system. On 16th Jun’22, the Board of SNGPL approved to lay 295KM of pipeline from newly discovered fields at North Wazirstan and Laki Marwat to the SNGPL transmission network with an estimated cost of PKR 23bn. The laying of the pipeline is subject to approval from OGRA.

Courtesy – AHL Research

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