⚡ Flash Summary

PPL, in partnership with United Energy Pakistan Limited (Operator with 50% working interest), Pakistan Petroleum Limited (40% working interest), and Asia Resources Oil Limited (10% working interest), has announced a gas discovery at the Kotri North Block in Sindh Province. The exploration well Barki-1, drilled to a depth of 3,392 ft MD, has shown hydrocarbon potential in Late Cretaceous/Early Paleocene sands. Initial testing yielded a flow rate of 1.5 million Standard Cubic feet per day (MMscfd), which increased to approximately 5.5 MMscfd post-acid stimulation, with Flowing Wellhead Pressure (FWHP) rising to 460 psig. Further evaluation of similar plays is underway to capitalize on this discovery.

📌 Key Takeaways

• 🎉 Gas discovery announced in Kotri North Block, Sindh Province.
• 🤝 Joint venture: United Energy (50%), PPL (40%), Asia Resources Oil (10%).
• 📍 Exploration well: Barki-1 in District Jamshoro.
• 📅 Spudded on: 21st July 2025.
• 📏 Total depth: 3,392 ft MD (Measured Depth).
• 🧪 Target: Hydrocarbon potential of Late Cretaceous/Early Paleocene Sand.
• 🛢️ Initial flow: 1.5 MMscfd of gas at 200 psig.
• 🧪 Post-stimulation flow: ~5.5 MMscfd of gas at 460 psig.
• 🔬 Wireline logs and Modular Dynamic Testing (MDT) confirmed presence of hydrocarbons.
• ⏳ Similar plays under evaluation for future drilling.

🎯 Investment Thesis

Based on the gas discovery announcement, a ‘BUY’ recommendation is warranted, contingent on further detailed reserve estimates and production plans. The successful exploration improves PPL’s growth prospects and could enhance shareholder value. A price target of PKR 150 (based on potential future cash flows) with a medium-term horizon (12-18 months) is reasonable, assuming successful commercialization of the gas discovery.