Mari has drilled the first ever horizontal well “Mari-122H”,

The management of Mari Petroleum Company Limited held a Corporate Briefing session on 14th Oct’22 to discuss the FY22 financial result and future outlook of the company.

 Brief Takeaways

·        To recall, the company posted a profit after tax (PAT) of PKR 33bn (EPS: PKR 247.84) in FY22 against PKR 31bnn (EPS: PKR 235.71) in FY21, up by 5% YoY. The earnings went up on account of i) 5% YoY growth in gas production along, and ii) 19% YoY jump in the wellhead price of Mari Gas Field. The management told that without super tax the profitability in FY22 would have been PKR 38bn.  

·        The management highlighted that the newly discovered Bannu West (which is the first ever discovery in North Waziristan) underwent a post acid test, results of which showed a flow rate of 50mmcfd of gas and 300bopd condensate. The management estimates that production from the field is expected to come online within 8-10 months.

·        Regarding the offshore Block-05 in Abu Dhabi, the management told that an appraisal well is scheduled to be drilled in the 2QCY23.

·        The management further informed that the company’s expected CAPEX for FY23 is estimated to be USD 200mn (which includes USD 100mn for exploration).

·        The management informed that the company’s market share in country’s oil and gas production is 3% and 23% YoY, respectively.

·        During FY22, the company’s HRL Swing Volume Project has exported 45bcf of gas to SNGPL, which generated an additional revenue of PKR 8bn. 

·        The management informed that Phase I of Sachal Gas Processing Complex (SGPC) has been completed. Meanwhile, the phase II of the project is expected to be completed in 4QCY22, whereby 90mmcfd of pipeline will be added.

·        The management shared that the company has drilled the first ever horizontal well “Mari-122H”, which tested at a rate of 21 mmcfd of gas. The management told that horizontal wells have higher deliverability and pressure. Furthermore, the company plans to bring this well in early production. In addition to this, the company will drill more horizontal wells in future in order to extend HRL gas plateau.

Courtesy – AHL Research

Posted in Oil & Gas Industries.

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