⚡ Flash Summary
PPL, along with its partners in the Sawan Joint Venture, has announced a new gas discovery in the Sawan Field, located in Sindh Province. The exploratory well, Sawan North Deep-1 ST-1 (SND-1 ST-1), was successfully drilled to a depth of 14,017 feet and yielded gas at a rate of approximately 0.30 MMscfd. This discovery validates a pioneering sequence stratigraphic evaluation approach in the Sawan area. The find opens new exploration horizons within the region, suggesting potential for further discoveries.
📌 Key Takeaways
- ⛏️ New gas discovery in Sawan Field, Sindh Province.
- 🤝 Joint Venture: UEP Beta (25%), Pakistan Petroleum (30%), PPL Europe E&P (10%), Prime AEP (30%), Government Holdings (5%).
- 📍 Location: Exploratory well Sawan North Deep-1 ST-1 (SND-1 ST-1) in District Khairpur.
- 🗓️ Spud-in Date: September 16th, 2024.
- 📏 Drilled Depth: 14,017 feet (Measured Depth).
- 🎯 Primary Objective: Explore hydrocarbon potential of Lower Goru Formation (A-Interval Sands).
- 🧪 Testing: Post completion testing conducted on promising A-sand intervals.
- 💨 Gas Yield: Approximately 0.30 MMscfd.
- 🛢️ Flowing Wellhead Pressure: ~100 psig at 128/64″ choke.
- 🧪 Methodology: First well in Sawan area using an exclusive sequence stratigraphic (trap) evaluation approach.
- ✅ Validation: Discovery validates underlying geological concept.
- 🗺️ Exploration: Opens new exploration horizons in the Sawan region.
- 📜 Compliance: Information submitted under Section 96 of Securities Act, 2015 and Clause 5.6.1 of PSX Regulations.
🎯 Investment Thesis
HOLD. While the gas discovery is a positive development, the initial flow rate is modest. PPL’s stock price is likely to see a slight upward revision based on this news. Further exploration and development will be necessary to fully realize the potential of this discovery. Price target: PKR 900. Time horizon: Medium Term.
Disclaimer: AI-generated analysis. Not financial advice.