As per latest data published by Pakistan Petroleum Information Service (PPIS), Pakistan’s total oil gas reserves are up by +5% to 348mnbbls as at Jun-18 compared to 332mnbbls at Jun-17. Gas reserves are down by 6% to 19.54tcf as at Jun-18 compared to 20.79tcf at Jun-17.
· Joyamair and Pindori field oil reserves have been revised upwards by +221x and +2.7x to 13.3mn bbls and 2.1mn bbls respectively as at Jun-18. Sui Deep gas reserves to the tune of 500bcf have been removed from which production was yet to be commenced since inception leading to a 30% drop in reserve base to 1.28bcf as at Jun-18,
· Adhi field oil reserves have been revised down by 30% to 18.7mn bbls as at Jun-18 which comes at a draw-down of 7.98mn bbls. Jhandial field reserves currently stand at 23.9mnbbls while gas reserves are reported at 0.29tcf. The aforementioned field accounts for nearly 7% and 1% of Pakistan’s oil and gas reserves, respectively.
· Mardankhel oil and gas reserves have been revised down substantially by 60% and 61% to 6.2mnbbls and 132bcf at Jun-18 compared to 15.6mnbbls and 338mmcfd at Jun-17,
· PPL and MARI remain our top picks among IGI E&P Universe with our Dec-18 target prices of PKR 2,291/share and PKR 260/share offering 44.7% and 22.7% upside respectively, from last close. PPL and MARI are trading at FY19F P/E of 6.6x and 6.8x respectively.
Courtesy: IGI Securities.