OMV discloses major gas find in Pakistan

OMV's Pakistan Gas Strike [138,481 bytes]

OMV (Pakistan) Exploration GmbH has disclosed a gas find in Pakistan's Sindh province. Reserves are tentatively pegged at more than 1 tcf.

The operator, a unit of Vienna's OMV AG, said 1 Sawan wildcat was spudded on Southwest Miano block in October 1997 and was drilled to 3,587 m TMD.

The well penetrated a 95 m gas column in the Cretaceous lower Goru, with 75 m of net pay. OMV said initial tests show the gas is of high quality, with a 10% CO2 content.

On test the well flowed at a stabilized rate of up to 58 MMcfd of gas through a 62/64-in. choke at wellhead flowing pressure of 3,600 psi. OMV said the flow rate was limited by tubing size.

The discovery

Southwest Miano license partners are: operator OMV 25%; Pakistan Petroleum Ltd. (PPL) 30%; Hardy Exploration & Production Ltd., London, 30%; Czech firm Moravske Naftove Doly Doly AS (MND) 10%; and the Pakistan government 5%.

The group intends to appraise the gas find as soon as possible with further wells and a 3D seismic survey. The aim will be to confirm commercial reserves and establish a development concept.

The operator said, "This discovery is anticipated to be the largest ever gas discovery in the country from the Cretaceous lower Goru formation.

"The Sawan-1 well has established substantial reserves, which will be quantified following further data analysis. The joint venture believes that the reserves potential of the field is in excess of 1 tcf of gas."

OMV said the Pakistan government has an option to increase its working interest to a maximum 22.5% during development and production, which would leave OMV with 19.7%, PPL with 26.2%, Hardy with 23.7%, and MND with 7.9%.

OMV discovered Miano gas field on Block 20 to the northeast in 1993 and is negotiating to develop this through nearby gas processing facilities in Kadanwari field. There, London's Lasmo plc is operator.

Sawan partner Hardy said the discovery well was suspended as a producer, pending a formal decision on commercial development. Hardy is also license partner in Block 20 and Gambay block, which lie on either side of Southwest Miano.

Area gas potential

Hardy said the Sawan find and the thickness of its gas column suggest similar discoveries may be made in the same play on its three licenses in the area (see map).

John Walmsley, Hardy chief executive, said: "This well has proven minimum reserves of 350 bcf of gas out of an expected total reserves figure in the range of 1-2 tcf of gas in Sawan field.

"The thickness and quality of the Sawan reservoir are the best we have found in the region. We also expect to commence development of Miano field this year with first production due by the end of 1999.

"What is particularly encouraging about the results of the Sawan-1 well is that they open up the prospect of similar accumulations of gas being found in other parts of the licensed area. I am confident that our intention to develop these fields rapidly is supported by Pakistan's desire to reduce its reliance on imported energy."