Mari Petroleum Bannu West field to start oil and gas production in 8 months

Mari Petroleum Bannu West Field is likely to start production in 8–10 months with flows of 50 mmcfd of gas and 300 bpd of oil. The well’s estimated reserves stand at 55 MMBOE.

Mari Petroleum management informed during the corporate briefing here on Friday.

Mari Petroleum Company Limited (MARI) held its corporate briefing on Friday to discuss the FY22 results and future outlook of the company.

In FY22, MARI acquired 5 new exploration blocks, taking the cumulative count to 29 blocks, with the company boasting an acreage of 58,000 sq. km.

The company’s gas production in FY22 averaged 776mmcfd, and oil production was at 1,800bpd having a market share of 25% and 2.5%, respectively.

  MARI drilled the first-ever horizontal well in the Mari block, with a 530m horizontal section, which has resulted in the plateau extension of the well. The initial testing at the horizontal well has resulted in a flow rate of 21mmcfd of gas.

HRL field currently has production of 630mmcfd and volumes exceeding 525mmcfd and are priced at PP12.

Production from Bannu West is expected to start in 8-10 months with flows of 50mmcfd Gas and 300bopd of Oil. The well’s estimated reserves stand at 55mmboe.

As per management, MARI held 2P reserves of 571mmboe as of Jun-2023, of which 99.40% are gas reserves.

MARI’s focus will also remain on providing services to other E&P companies for conducting 2D Seismic Data Acquisitions with MARI’s in-house integrated E&P services arm.

 Regarding the temporary suspension of production from Zarghun South and Bolan East due to destruction in the area amid floods, management be informed that to date production has not started.

 The company is facing security issues in some of its fields which have caused operational delays, however, the company is in talks with the security forces for resolution.

Management stated that despite increasing the supply of gas to the distribution companies, it has been able to reduce its debtor days from 113 in FY21 to 101 in FY22 with further reduction Sep-2022 quarter.

To recall, MARI reported earnings of Rs33.1bn in FY22, up 5% YoY. The company stated that in the absence of the Super Tax, MARI would have posted Profit after Tax (PAT) of Rs38bn, up 21% YoY, Topline Pakistan Research said.