MOL Buys 30% Stake in DG Khan Block, Announces New Discovery

BUDAPEST--Hungarian oil and gas company MOL Nyrt. (MOL.BU) announced Tuesday a new discovery from its exploration well Mardan Khel-1 and said it will farm into the DG Khan Block, in Pakistan.

MAIN FACTS:

- Mardan Khel-1 was drilled as an exploration well in TAL Block, located in the Khyber Pakhtunkhwa Province. It was spudded on Sept. 17, 2014 and the well reached target depth of 4,912 meters Feb. 17, 2015. The well tested four formations and all flowed with high volumes of gas and condensate. The two best tested zones (Lumshiwal and Lockhart) yielded 4,300 barrels of oil equivalent per day gas along with 2,100 bpd condensate and respectively 4,000 boepd gas along with 1,840 barrels per day condensate. The well will be completed as a producer and tied-in to the Makori Central Processing Facility. The current total production capacity of the facilities in the Tal block is 80 kboepd gas and 37 kboepd of liquids per day. This capacity is sufficient to integrate the new well.

- MOL intends to carry out an appraisal plan including additional wells on the Eastern and Western parts of the structure. Its partners in the joint venture consortium are OGDC (30%), PPL (30%), POL (25%) and GHPL (5%).

- MOL Pakistan Oil & Gas Co. B.V. has signed a farm-in agreement for the DG Khan block where MOL is acquiring a 30% non-operating interest from Pakistan Oil Fields Limited, or POL, in the block. POL is besides in the TAL block also our partner in the MOL-operated Margala and Margala-North blocks.

- The DG Khan Block is a promising gas and condensate exploration opportunity in the provinces of Punjab and Balochistan. After MOL's farm-in, the block will be operated by POL with a 70% working interest. The consortium intends to acquire seismic data this year followed by drilling of one exploration well in 2017. The transaction is subject to the approval of the Pakistani government.

- MOL has a well-established, proven track record and successful presence in the country with five blocks and over 15 years of operation. As the operating shareholder of the TAL Block, MOL is currently responsible for over 70,000 boepd gross production.

Write to Margit Feher at [e-mail]