MOL: Made Significant Oil Discovery in Ghauri Block, Pakistan

BUDAPEST--Hungarian oil and gas company MOL Nyrt. (MOL.BU) said Tuesday that its Ghauri Joint Venture made a significant oil discovery in Ghauri X-1 well, located in district Jhelum, Punjab Province in Pakistan.

MAIN FACTS:

- GJV comprises Mari Petroleum Company (MARI.KA), with a 35% working interest as operator, as well as Pakistan Petroleum Limited (PPL.KA) and MOL with a 35% and a 30% working interest, respectively.

- The Ghauri well discovery is a landmark achievement being the first hydrocarbon discovery in the Eastern part of Potwar Plateau.

- The Ghauri X-1 well flowed oil with API gravity of 23 from Sakessar Formation at original average flow rate of 1,193 bbls/day, which increased to 5,500 bbls/day after acid treatment at 32/64" choke size, 1100 psi (76 bar) flowing wellhead pressure.

- The well's recorded flow rate ranks it amongst the country's top oil producing wells.

- Based on initial evaluation of this well test MOL believes the potential for this part of the Ghauri Block could be significant. MOL is currently evaluating the discovery, however it is too early to provide a forecast for the whole Block.

- In the vicinity of the Ghauri X-1 well MOL supports its partner's initial estimate of reserves in place of 22 million barrels, which is related to the proven oil producer Sakessar Formation.

- As MOL progresses the development of secondary reservoir Kussak Formation, with its Partner Mari Petroleum, it will develop a better understanding of the estimate of reserves contained with the Ghauri Block.

- Mari Petroleum as operator has initiated installation of early oil production facilities on fast track basis and targets to put the well on Extended Well Test production by the end of June 2014. The Ghauri joint venture is working to expedite exploration of the remaining hydrocarbon potentials in Ghauri Block.

- MOL reinforced its intention to increase investment in Pakistan, especially in view of the country's investor-friendly policies.

Write to Margit Feher at [e-mail]

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