Pakistan Oilfields Limited (POL) has revealed that hydrocarbons have been encountered at development well Makori Deep-2 in partner operated TAL block. TAL block is operated by MOL with joint venture partners including POL, PPL and OGDC having 21 percent, 27 percent and 27 percent stake, respectively.

According to the notice sent to Pakistan Stock Exchange, 1844bpd (barrels per day) of oil and 18.25mmcfd (million cubic feet per day) of gas is encountered. It is pertinent to note that according to the company, actual production number may differ after further testing is carried out.

"As per our calculation, earnings impact of the above mentioned development well size for POL is around Rs 4.9 per share", Aftab Awan, an analyst at Sherman Securities said. For PPL and OGDC, EPS impact is Rs 0.8 and Rs 0.4, respectively, he added.

Copyright Business Recorder, 2019