First Ever Gas Discovery in Kalat, Balochistan Opens New Exploration Avenues

Pakistan Petroleum Limited (PPL) has announced that it has made two discoveries of hydrocarbon reserves in Sindh and Balochistan.


In a notification to the PSX, the company announced that it has discovered hydrocarbon reserves in an exploratory well, Bistro-1 in Latif block, which is located in Khairpur district, Sindh and exploratory well, Margand X-1, in Margand Block, in Kalat plateau, Balochistan.

Margand X-1

Pakistan Petroleum is the sole operator of the exploratory well and holds 100% working interest in it.
According to the details, the well was spud on 30th June, 2019 to measure the depth of 4500 meters inside Chiltan Limestone.

Modular dynamics testing was done which proved the presence of hydrocarbons. Accordingly, a drill stem test was done in Chiltan Limestone, during which the well flowed a maximum of 10.7 million cubic feet per day of gas at 64/64 inches choke size at a flowing level of head pressure of 516 pounds per square inch with 132 barrels per day liquid. However the nature of the liquid is being investigated and the well has the potential to flow at higher rates after an acid stimulation job, stated the company.

It is highlighted that this is the first gas discovery on Kalat Plateau and it has opened a new sub-basin for further hydrocarbon exploration. The discovery of Margand X-1 well is the result of an aggressive strategy in the exploration of frontier basins adopted by PPL, to open new avenues for hydrocarbon exploration and production in Balochistan.

Cumulatively, the company has discovered 39.3 MMscfd of gas.

These two discoveries are the result of the company’s aggressive strategy of exploration in order to reach new avenues for hydrocarbons exploration and production. Both the discoveries will add to the company’s hydrocarbon reserves and will contribute in reducing the gap between the supply and demand of oil and gas in the country through exploitation of indigenous resources.


At the time of filing this report, PPL’s shares at the bourse were trading at Rs. 134.20, down by Rs. 6.52 or -4.63% with a turnover of 4,305,900 shares on Monday.

Well Bistro-1

The discovery was made by the Joint Ventures of the Latif Exploration License, which holds 33.30% working interest, along with Eni Pakistan (M) Ltd with 33.30% working interest and United Energy Pakistan, with 33.40% working interest and is also the operator of the block.

According to the details, the well was spud on 6th of October 2019 to test the hydrocarbon potential of B and intra B sands of the Lower Guru formation, as primary and secondary objectives. The well was successfully drilled to a depth of 11,854 ft.

Upon the completion of the well, B sand zone was perforated, which flowed 28.6 million standard cubic feet per day (MMscfd) of gas with 152 barrels per day (condensed) water at a flowing wellhead pressure of (FWHP) 3116 pounds per square inch at 44/64” choke size.


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