Sanie Khan
Makori East-3 yields flows- Global Research
According to Pakistan Oilfields (POL)’s annual financial statements, Makori East 3 (Tal Block) has yielded 2,400 barrels of oil/day and 8mmcfd gas from the Lokhart Formation. The well is still under the testing phase. Channel checks reveal that the final flows can go up to atleast 5,000bbl/day oil and 12mmcfd gas.
On an annualized basis, addition of 2,400bbl/day oil and 8mmcfd gas will add PKR 0.25/sh, PKR 0.64/sh and PKR 3.76/sh to OGDC, PPL and POL’s earnings respectively.
The major beneficiary of this find will be Pakistan Oilfields. Moreover, as these flows are not the final flows, sensitivity table for annualized earnings impact on POL is given below for different flow levels:
|
Annualized EPS impact on POL (PKR/share) |
||||||
|
gas flows (mmcfd) |
Oil flows (bbl/day) |
|||||
|
2,000 |
3,000 |
4,000 |
5,000 |
6,000 |
||
|
4 |
3.0 |
4.4 |
5.8 |
7.3 |
8.7 |
|
|
8 |
3.2 |
4.6 |
6.0 |
7.4 |
8.9 |
|
|
12 |
3.4 |
4.8 |
6.2 |
7.6 |
9.0 |
|
|
16 |
3.6 |
5.0 |
6.4 |
7.8 |
9.2 |
|
| Source: Global Research | ||||||
Syed Zaki Hussain
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