MOL Pakistan has made a significant discovery in the TAL Block, Kohat, with the unveiling of the Razgir-1 exploratory well. TAL Block hydrocarbons have been discovered in the exploratory well Razgir-1, spudded on January 09, 2024, and drilled down to 3,950 meters. As a result of the Drill Stem Test (DST) conducted at the well to test the potential of the Lumshiwal formation, the well has tested 20 MMscf of gas per day and 250 barrels per day of condensate at 40/64″ fixed choke size at the flowing wellhead pressure of 2,348 psi.
Testing operations are still being done to ascertain the true potential of the well.
A Drill Stem Test (DST) is a procedure for isolating and testing the surrounding geological formations through the drill stem. The test measures pressure behaviour at the drill stem and is a way to obtain important fluid sampling information and establish the probability of commercial production. Accordingly, it should be noted that actual production may differ significantly from the test results.
The pre-commerciality working interest of Pakistan Oilfields Limited is (25%)
According to AKD Research, MOL Pakistan, operator of the TAL Block in Kohat, discovered hydrocarbons in the exploratory well Razgir-1. The discovery includes 250bpd of oil and 20mmcfd of gas. Post-commerciality interests for OGDC, PPL, and POL stand at 27.8%, 27.8%, and 21.05%, respectively. To note, MOL spuds the Razgir-1 well in Jan’24 and completed it ahead of the target date.
For the FY25E earnings, we anticipate a positive EPS impact for OGDC, PPL, and POL, estimated at PkR0.32, PkR0.51, and PkR3.7 per share, respectively.