Pakistan Exploration Ltd Assumes Operatorship of Block 22

Petroleum Exploration Limited or PEL, Pakistan's first private oil and gas company has taken over the operatorship of Block 22 to develop Sadiq X-1, Khanpur X-1 and Hasan X-1 in the Provinces Sindh and Balochistan from Pakistan Petroleum Limited (PPL).

The Joint Venture partners in this Block are Pakistan Petroleum Limited with a working interest of 35.5%, Government Holdings (Pvt) Limited with a working interest of 25% and Pyramid Energy International Inc, Canada with a working interest of 15.78%. The working interest of Petroleum Exploration (Pvt) Limited is 23.68%.

This block was awarded to Petroleum Exploration (Pvt) Limited in November 1994. The operatorship was transferred to joint venture partner PPL in 1996. The Block is located in the administrative districts of Shikarpur, Jacobabad, and Sukkur in Sindh Province and District Nasirabad in Balochistan Province. It has on its North Giant Sui Gas Field, Uch and Loti Gas Fields, on its South it has Kandra Gas Field, on its East it has Ghauspur, Kandhkot and Mari Gas Fields.

The total investment made through March 2003 in the Block is US $16.9 million.

Director General Petroleum Concession (DGPC) had approved declaration of commerciality over Block-22 in November 2002. Subsequently, DGPC granted D&P Leases for Hasan, Sadiq and Khanpur and approved the Development Plan in April 2003. The salient features of the Development Plan having three phases include Phase 1 -Hasan X-1 Extended Well Test (Commenced in December 2000 and 14 MMscfd gas was supplied to SNGPL till April 03, 2003), Phase 2 - Tie-in Sadiq-1 and Khanpur-1 with the existing processing facility and enhance the production from current rate of 14 MMscfd to 20-22 MMscfd and Phase 3 - Drill and complete development well Hasan-2 on Structure D and increase the gas supply to 30 MMscfd.

A compressor station will be installed during 2006 to maintain the plateau rate of gas production. PEL has an aggressive exploration policy and presently has exploration licenses over Kandra and Mirpur Mathelo Blocks and a mining lease over Badar Gas Field with the working interest at Kandra being 95%, Mirpur Mathelo 95% and Badar Gas field 26.32% accordingly. Petroleum Exploration (Pvt) Limited is the Operator in all these blocks.