Pakistan Petroleum Limited (PSX: PPL) is expanding its mining portfolio by entering into a Joint Venture Agreement (JVA) Arrangement with Degan Exploration Works (DEW) to explore and develop mineral resources in exploration license EL-207, in District Chagai, Balochistan.
PPL and DEW shall have interests of 49% and 51%, respectively, a stock filing by the oil & gas exploration company said on Friday.
DEW, the operator of EL-207, is a wholly-owned subsidiary of Frontier Works Organization (FWO) and has been awarded exploration rights by the Government of Balochistan. The subject license area is located in the Chagai Metallogenic belt which is well-known for world-class copper and gold deposits such as Reko Diq and Saindak.
Subject to all relevant corporate and regulatory approvals, PPL will be investing around $11.5 million in the initial exploration phase, over a three-year period to support the exploration activities pursuant to the aforementioned exploration license i.e., EL-207.
“We are optimistic that this venture will provide strategic advantages to the Company within the mineral-rich Chagai Metallogenic belt,” PPL added.
At the time of filing, PPL’s scrip at the bourse was Rs. 124.3, up 1.65 percent or Rs. 2.02 with a turnover of 10.4 million shares on Friday.
