PEL Profile, December, 2009 - Shahzad · PDF filePEL Profile, November 2012 5 BRIEF HISTORY...

PEL Profile, December, 2009

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PEL Profile, November 2012 2

TABLE OF CONTENTS CONTENTS PAGE 1. CHAIRMAN AND BOARD OF DIRECTORS 3 2. PEL AT A GLANCE 4

a. Petroleum Exploration Pvt Ltd Synopsis 4 b. Vision 4 c. Policy 4 d. Mission 4 e. Brief History 5 f. Gas Production Share of PEL 7 g. Development and Production Leases in Pakistan 8 h. E&P Potential in Pakistan 8 i. Snapshot of 2012 Activities 9

3. PEL JOINT VENTURE PARTNERS 11

4. OIL/GAS ASSETS 12 5. PRODUCING ASSETS 13

a. Block 22 14 b. Badar Mining Lease 16 c. Kandra D & P Lease 18

6. OIL/GAS Resource potential 20

7. EXPLORATION LICENSES ONSHORE/OFFSHORE PAKISTAN 21

a. Sukkur Block 22 b. Mirpur Mathelo Block 24 c. New Larkana Block 26 d. Badin IV North Block 28 e. Badin IV South Block 30 f. Offshore Indus J Block 32 g. Kaloi Block 34 h. Jhangara Block 36 i. Mirpurkhas West Block 38 j. Sanghar East Block 40 k. Salam Block 42

8. PERMITS IN MOROCCO 44

a. Haha Permits, Essaouira Basin, Morocco 45 9. HEALTH, SAFETY, ENVIRONMENT AND SECURITY 47 10. ENVIRONMENT PROTECTION POLICY 48 11. CORPORATE SOCIAL RESPONSIBILITY ( Message from the Chairman) 49 12. CORPORATE SOCIAL RESPONSIBILITY (CSR) 51 13. TRANING POLICY 59 14. STATUTORY PAYMENTS TO THE GOVERNMENT 60 15. FUTURE OUTLOOK 61 16. EXPECTED POTENTIAL RISE 61


CHAIRMAN & BOARD OF DIRECTORS

Mr. Zaheeruddin Chairman & Chief Executive

Mr. Zafar Iqbal Director

Mr. Moeenuddin Director

Mr. Shahzad Zaheer Director


PETROLEUM EXPLORATION PVT LTD

SYNOPSIS

PEL is a private sector Pakistani E&P company. It was established in 1994 and in a short period has become an active operator having largest acreage among ten private sector operating companies in Pakistan. It is exploring on land and deep waters off-shore Pakistan. It is also the first Pakistani E&P Company operating abroad and is currently carrying out exploration over three onshore Permits in Morocco. PEL has a highly experienced E&P team with industry renowned experts. It is organized into multidisciplinary integrated teams and believes in optimally exploiting knowledge/technology by outsourcing to industry leaders. It has twelve JV partners from Pakistan, Canada, Kuwait, UK, Morocco and Australia, which include British Petroleum (BP), Oil & Gas Development Company (OGDCL), Pakistan Petroleum Limited (PPL), Mari Gas Company Limited (MGCL), Frontier Holdings Limited (FHL), Gulf Petroleum Exploration Pakistan (GPXP) (Pvt) Ltd, ONHYM, Sherritt International Oil and Gas (Sherritt), Spud Energy (Spud) , Oil & Gas investment Limited (OGIL), Pyramid Energy International Incorporated, BVI (Pyramid) and Government Holding (Pvt) Ltd (GHPL). PEL would welcome new partners in PEL’s concession areas onshore/offshore Pakistan and onshore Morocco.

VISION

PEL recognizes the importance of gaining knowledge and evolving technology for effective exploitation of oil and gas from old as well as new petroleum systems. It aims at building a strong professional team, possessing knowledge, experience and technology to develop a cutting edge for hydrocarbon exploration and production. It envisions for itself a significant role in contributing to Pakistan’s economy, with specific focus on the energy sector. PEL is determined to protect and safeguard the environment, while carrying out its exploration and production operations, nationally and internationally. PEL visualizes to be a credible and responsible member of petroleum industry.

POLICY

PEL believes in spreading risk and sharing reward. It is open to farming out to credible companies and farming into other opportunities. It values the proliferation of information and knowledge for the common benefit of its joint venture partners. It builds on a strong core of technical expertise in all areas of exploration and production. It seeks to strengthen its credibility as a responsible exploration and production company.

MISSION

PEL aims to play an important role in exploration and production of oil and gas in Pakistan and abroad and thereby becoming a world class successful exploration and production company. The company is endeavoring to increase its share in production of natural gas and to become a producer of oil. PEL is determined to acquire and hold a cutting edge exploration and production expertise. Its mission is to follow the finest corporate culture, in all its operations.


BRIEF HISTORY

PEL was established by Mr. Zaheeruddin, who is the Chairman and Chief

Executive. Under his dynamic leadership, PEL embarked upon a bold and

imaginative exploration program to rapidly explore and develop new deposits of

hydrocarbons. In less than 18 years PEL has grown into a highly experienced and

successful E&P Company operating both nationally and internationally, and

currently has the largest exploration acreage among ten private sector operating

companies in Pakistan.

PEL has been successful in acquiring and building a highly experienced team of

petroleum professionals, including geologists, geophysicists, petroleum and process

engineers, and financial experts. It is highly equipped with logistics and support

services.

PEL currently operates 9 onshore and 1 offshore exploration license, 4

development and production leases (an additional lease is under processing), one

mining lease and one non-operated joint-venture block in Pakistan. It has so far

drilled 15 exploration and development wells and has recently completed drilling of

three deep wildcat exploration wells in different joint ventures, involving an

expenditure of about US$ 50 Million. PEL is presently producing natural gas from

four gas fields. Recently, a gas discovery has also been made in Sukkur block,

operated by Mari Gas Company, in which PEL has 41.2% interest. PEL and its joint-


venture partners are committed to investing over US$300 Million on exploration and

development in its concession areas in the next 3 years.

PEL has an aggressive drilling program of drilling Nineteen exploratory and fifteen

development wells in the next 3 years. It is also undertaking the development of the

low BTU gas field at Kandra for power generation. The remaining recoverable

reserves are over 3 TCF of gas comprising Block-22 (113.561 BCF), Badar (54.98

BCF) and Kandra (2.86 TCF).

PEL, in JV partnership with Frontier Holdings Ltd and Government Holdings

(Private) Ltd, is developing Kandra gas field for supply of gas of around ± 330

BTU/SCF to120MW Kandra power plant to be set up by a sister company, Kandra

Power Company. The field development envisages drilling and completing 12-14

additional producing wells, surface gathering facilities and central processing facility

for producing 120 MMSCFD of raw gas. The field has 2.86TCF recoverable

reserves of gas and has the potential of fueling another power plant eventually.

PEL entered the realm of offshore exploration in 2006 and executed three Offshore

Production Sharing Agreements with the Government of Pakistan for Indus Offshore

Blocks J, O and P in deep to ultra deep waters in exclusive economic zone of

Pakistan. PEL acquired 1646 line-km of 2D seismic and 569 km2 of 3D seismic to

evaluate the hydrocarbon potential of these blocks. Based on the interpretation of

2D and 3D seismic, blocks O and P were relinquished as no sizeable prospects

were identified. Three structures were identified in Block J with a potential reserve

exposure of over 25 TCF. Block J has been retained for drilling these potential

structures requiring substantial investment.

PEL is privileged to have achieved the distinction of being the first private sector

Pakistani company to undertake overseas exploration in the Kingdom of Morocco,

North Africa. On May 10, 2007, PEL signed Petroleum Agreement and Association

Contract for exploration and exploitation of hydrocarbons in three Permits i.e. Haha-

1, 2, and 3. In July 2009 PEL completed acquisition of 139 Km² of 3D seismic data

which was processed and interpreted by CGG Veritas. A number of leads have

been mapped. Further work is in progress for evaluation of these leads. PEL will

soon undertake drilling of first well (Tamanar-1) and would welcome participation by

serious E&P companies in these Permits.

PEL Profile, November 2012

7

GAS PRODUCTION SHARE 2010-2011

GAS PRODUCTION SHARE 2010-2011 (PRIVATE SECTOR)


E & P POTENTIAL IN PAKISTAN Pakistan has two major basins Indus and Balochistan covering an area of 827,268 Km²

on land and offshore platform. Indus Basin is still under-explored and Balochistan

Basin is not explored at all. Out of 785 exploration wells drilled to date, 273 discoveries

of oil, gas and condensate have been made. In all 944 milliion barrels of oil and 55

trillion cubic feet of natural gas have been discovered, nearly half of which have already

been produced.

Role/Potential of Natural Gas

Energy economy of Pakistan is gas based: indigenous gas is providing nearly 50%

of the primary energy mix

Gas infrastructure is well developed country-wide and fast expanding (about 12%

per year): about 10,000 km transmission and 75,000 distribution pipelines supplying

over 5.2 millions consumers (increasing @ 8% per year).

About 1.5 TCF gas is being consumed at a daily rate of about 4 BCFD.

According to USGS 2002 Report over 19 TCF gas and 250 million barrels of oil is

yet to be discovered in areas under exploration excluding the frontier regions

A guaranteed gas market exists with huge unsatisfied gas demand: revenues from

new discoveries can start soon under extended well test production and interim sale

Pakistan offers attractive financial package, interesting geology and a huge market for

oil and gas. It presents enormous E&P opportunities.


SNAPSHOT OF 2012 PROGRAM

Badin IV North Block An exploratory well may be drilled subject to JV consensus.

Geological & Geophysical evaluation of identified leads/prospects for drilling additional wells

Badin IV South Block An exploratory well is planned to be drilled to test Upper Sands of the Lower Goru

formation by end 2012

Second exploratory well may be drilled subject to JV consensus

Geological & Geophysical evaluation of identified leads/prospects for drilling additional wells will continue

Mirpur Khas West Block An exploratory well is planned to test the Lower Basal sands of Lower Goru Formation of

Cretaceous age

New Larkana Block,

Acquisition of about 400 line km 2D seismic data is being planned

G&G studies will continue

Sanghar East Block

Acquisition of 2D seismic data will be planned after evaluation of Petroleum system in the Block.


Kaloi Block

Acquisition of 2D seismic data is being planned


Haha Permits Morocco

An exploratory well to test Triassic reservoir objective is planned


Salam Block

Reserves estimates and economic analysis of drilling a well outside the river channel has been undertaken

Drilling of an exploration well to about 1480 m to test Sui Main Limestone (Early Eocene) is being planned

Mirpur Mathelo Block

Acquisition of 150 line km 2-D seismic survey will be undertaken after determination of stratigraphic potential of Block

Steps are in hand to carry out a study to assess the possibility of stratigraphic plays.

Re mapping of Rafay structure through an outside consultant is being considered


Jhangara Block

Planning to acquire 2D seismic datais in hand

G&G studies of Jhangara and surrounding areas are in hand

Badar Block

Efforts are in hand to engage a suitable drilling rig to drill Badar-2 development well to a planned total depth of 1445 m in fourth quarter of 2012

G&G work to identify additional leads in Badar D&P area are in progress

Sukkur Block

Mian Miro-1 well was drilled to a depth of 1250 m. Post drilling evaluation of Mian Miro 1

well is in hand. The well has been successfully tested and completed as gas producer on

24.May.2012.

Plans are in hand for conducting EWT during the upcoming weather window.

After installation and commissioning of gas processing facilities, Koonj 1-A well was put

back on production on 8th October 2011. The well is producing around 2.5 MMscfd and

processed gas is being supplied to SNGPL.

G&G work for future exploration objectives continues

Block-22

Arrangements are being finalized for drilling Hasan-4 development well in the 4rd quarter of

2012 for increasing the production from Hasan gas field.

Declaration of Commerciality for Hamza gas field is under consideration of the Government

of Pakistan

Kandra Block

Stratigraphic interpretation of Sembar (Early Cretaceous) clinoform and onlap on Chiltan

Formation (Jurassic) is planned.

Draft tender documents for hiring EPCC contractor have been finalized.

Selection of consultant for vetting EPCC draft tender document, tendering and selection of

EPCC contractor and supervision of the work of EPCC contractor for Kandra field

development project has been finalized.

Tender documents have been prepared for acquiring the services of a specialist CO2

consultant which are under review of JV partners.


PEL JOINT VENTURE PARTNERS

The range and diversity of operating companies which have entered into joint venture with PEL is evidence of their confidence in its operating ability and competence. Below is a list of our esteemed joint venture partners.


OIL/GAS ASSETS The company’s recoverable reserves from Block-22, Badar and Kandra fields are estimated to be over 3 TCF of gas. Third party consulting engineering firms were employed to confirm OGIP and recoverable reserves in development and production leases.


PEL PRODUCING ASSETS:

Block 22

Badar Mining Lease

Kandra D & P Lease

Sukkur Block

DEVELOPMENT AND PRODUCTION/ MINING LEASES IN PAKISTAN

Development & Production/ Mining

Leases

Area (Km²)

WIOs

Cumulative Gas

Production as of Sept, 2012

Remaining Gas Reserves

as of Sept,2012

Badar ML 123.04

PEL (Operator) 26.32 % OGDCL 50 % Sherritt 15.79 % Spud 7.89 %

35.020 BSCF 54.98 BSCF

Hasan D&PL 37.6 PEL (Operator) 26.18 % PPL 35.53 % Pyramid 15.79 % GHPL 22.50 %

51.939 BSCF 64.461 BSCF

Sadiq D&PL 40.72 2.866 BSCF 8.934 BSCF

Khanpur D&PL 41.78 6.034 BSCF 17.566 BSCF

Kandra D&PL 286.08

WIO (Below SML) PEL 35% (Operator) GHPL 5% FHPL 35% GPX 25% ------------------------ WIO (in SML) PEL 37.5% (Operator) FHPL 37.5% GHPL 25%

0 BSCF 2860 BSCF

Hamza Discovery 173.12

PEL (Operator) 30.0 % PPL 45.0 % Pyramid 20.0 % GHPL 5.0 % (Carried)

0 BSCF 22.60 BSCF


BLOCK - 22

GRANT DATE: April 03, 2003

LOCATION: Sukkur, Jacobabad and Shikarpur, Sindh Province.

AREA: Hasan D & PL (37.05 KM2 )

Sadiq D & PL (40.72 KM2 )

Khanpur D & PL (41.78 KM2 )

PROSPECTIVITY ZONE: III

WORKING INTEREST: PEL 30 % PPL 45% Pyramid 20% GHPL 5% (carried)

PLAY TYPE: Structural

RESERVES EXPOSURE: 208 BCF

TENTATIVE WORK PROGRAM: Drilling of Hasan -4 well in 4th quarter of 2012

Location Map

Prospectivity map in the vicinity


SALIENT FEATURES:

Petroleum System is fairly established in the

region.

Proven recoverable reserves in Sui Main

Limestone are around 150 BCF having monthly

production of 183 MMscf.

Three wells (Hasan-1, Hasan-2 and Hasan-3)

were drilled in Hasan D& P Lease. Plans are in

hand to drill Hasan-4 as a development well

Two wells (Sadiq-1 and Sadiq-2) have been

drilled in Sadiq D & P Lease

Two wells (Khanpur-1 and Khanpur-2) have

been drilled in Khanpur D & P Lease.

Energy infrastructure exists in the area.

There are no security issues in the area.

Stratigraphic column, petroleum system and producing fields

Interpreted seismic section

PETROLEUM SYSTEM:

SOURCE:

Sembar shales (Cretaceous)

RESERVOIR:

Sui Main Limestone (Eocene)

SEAL:

Ghazij (Eocene)

TRAP:

Anticlinal structures formed in extensional

and trans-Tensional regimes


GRANT DATE: March 13, 2002

LOCATION: Ghotki, Kashmor and Sukkur, Sindh

Province

AREA: 122 km2


WORKING INTEREST: PEL 26.32% (Oprator)

OGDCL 50%

Sheritt 15.79%

Spud 7.89%

PLAY TYPE: Structural/Stratigraphic

PRODUCED HYDROCARBON: Gas


TENTATIVE WORK PROGRAM: Drilling of Badar-2 development well in

4th quarter of 2012.

BADAR MINING LEASE

Surrounding Gas discoveries & Infrastructure map

Location map


PETROLEUM SYSTEM

SOURCE

Sembar shales (Cretaceous)

RESERVOIR

Sui Main Limestone & Sui Upper

Limestone (Eocene)

SEAL

Sui Shale (Eocene)

TRAP

Anticlinal structures formed in

extensional regime

SALIENT FEATURES

Petroleum System is fairly established

in the region

Proven recoverable reserves in Sui Main Limestone

are estimated to be around 90 BCF

Badar-1 was drilled in 1994 and it has produced

35 BCF so far.

Currently the well is producing about 14 MMSCFD

There is updip potential in Sui Upper Limestone and

a lead has been identified

Energy infrastructure exists in Badar area

Seismic Section showing SML & SUL reservoir

Stratigraphic Column showing petroleum system


GRANT DATE: January 05, 2006

LOCATION: Sukkur and Khairpur, Sindh Province

AREA: 286.08 km2


WORKING INTEREST:

W.I.O IN EXPLORATION PEL(O) 35%

FHL 35%

GPX 25%

GHPL 5% (Carried)

W.I.O (IN SML)

PEL(O) 37.5%

FHL 37.5%

GHPL 25%

PLAY TYPE: Structural / Stratigraphic

RESERVES EXPOSURE: 2.86 TCF (SML) 120 BCF (Chiltan)

TENTATIVE WORK PROGRAM:

Kandra field development drilling 12-14 wells

115 Lkm 2D seismic data acquisition

KANDRA D & P LEASE

Location Map


PETROLEUM SYSTEM:

SOURCE

Sembar shales /deeper formations

RESERVOIRS

Sui Main Limestone (Eocene), Lower Goru

(Cretaceous) & Chiltan Limestone (Jurassic)

SEAL

Upper Goru (Cretaceous), Lower Goru intra-shales

(Cretaceous), Sui Shale & Ghazij Shale (Eocene)

TRAP

Anticlinal structure formed due to uplift of

Jacobabad-Khairpur paleo-high

SALIENT FEATURES:

Petroleum System is fairly established

in the region

Proven recoverable reserves of 2.86 TCF

in Sui Main Limestone

Additional potential at Chiltan level

Kandra-4 Deep tested 800+ BTU in

Chiltan Limestone


Interpreted Seismic Section


OIL/GAS RESOURCE POTENTIAL

PEL has 7 blocks with over 1800 km2 area under varying stages of exploration in a region of proven petroleum systems. Following a conservative basis about 2.6 TCF gas and 70 MMBBL of oil are expected to be discovered in exploration blocks excluding Sanghar East and Kaloi Block which are in initial stage of exploration as shown in the following pie Charts

Potential Gas in place 2.6 TCF Potential Oil in Place 70 MMBBL In Exploratory Licenses in Exploratory Licenses

Reserves Exposure for Offshore J Block is estimated at 25 – 30 TCF and for Mirpur Mathelo these are estimated to be over 2 TCF


EXPLORATION LICENSES ONSHORE/OFFSHORE

SUKKUR BLOCK

Mirpur Mathelo Block

New Larkana Block

Badin IV North Block

Badin IV South Block

Offshore Indus J Block

Kaloi Block

Jhangara Block

Mirpurkhas West Block

Sanghar East Block

Salam Block

Exploration Licence Name & Block No.

Area (Km²)

WIOs

Mirpur Mathelo (2769-9) 1030.68

PEL (Operator) 35 % FHPL 35 % GPX 25% GHPL 5 % (Carried)

Salam (2769-13) 200.22 PEL (Operator) 37.5% FHPL 37.5 % GPX 25%

New Larkana (2768-10) 2425.96 PEL 100 %

Badin IV North ( 2468-6) 1246.03 PEL (Operator) 47.5% FHPL 27.5 % GPX 25%

Badin IV South (2468-5) 1265.33 PEL (Operator) 47.5% FHPL 27.5 % GPX 25%

Offshore Indus-J (2266-4) 2436.3

PEL (Operator) 67% BP 33% (being assigned to PEL with the approval of GOP)

Jhangara (2567-5) 357.19 PEL (Operator) 40% OGIL 60%

Mirpur Khas West (2568-16) 199.26 PEL 100 %

Sanghar East (2669-5) 2493.13 PEL 100 %

Kaloi (2468-8) 2485.14 PEL 100 %

Hamza Discovery (Block-2768-3)

173.12

PEL (Operator) 30.0 % PPL 45.0 % Pyramid 20.0 % GHPL 5.0 % (Carried)

Sukkur (2768-9) 2435.4 PEL 41.176 % MGCL (Operator) 58.824%


SUKKUR BLOCK

GRANT DATE: 20th April 2006

LOCATION: Sukkur, Shikarpur, Khairpur, Larkana,

Jacobabad and Khasmor

AREA: 2435.4 Sq Km

PROPECTIVITY ZONE: III

WORKING INTEREST: PEL 41.18%

MGCL 58.82% (Operator)


HYDROCARBON: Gas

RESERVES EXPOSURE: 200-300 BCF

WORK COMMITMENT: 2D Seismic Acquisition of 100 line km,

reprocessing of 100 line km 2D seismic

and drilling 3 exploratory wells

Location Map

Location map

Discovery map


PETROLEUM SYSTEM

SOURCE Sembar shales (Cretaceous)

RESERVOIRS Sui Main Limestone (SML), Sui Upper Limestone (Eocene) &Lower Goru Formation (Cretaceous)

SEAL Ghazij shale & Sui Shale (Eocene), Upper Goru & Lower Goru intra-shales (Cretaceous)

TRAP Structural / Stratigraphic SALIENT FEATURES:

Interesting anticlinal features at SML level in the

western part of the block observed.

Strong indication of stratigraphic play at level of

Lower Goru Sands.

Good quality gas.

Established Infrastructure

Possible Mound Feature

Mound Feature is

very evident on strike line

P9122-13

P9122-13

Seismic Line showing Mound Feature


MIRPUR MATHELO BLOCK

GRANT DATE: June 03, 2002

LOCATION: Sindh

AREA: 1030.68 Km2

PROSPECTIVITY ZONE: Zone III

WORKING INTEREST: PEL 35% (Operator)

FHL 35%

GPX 25%

GHPL 5% (Carried)

PLAY TYPES: Structural/Stratigraphic

WORK COMMITMENT: 150Lkm 2D Seismic One Exploratory well

WORK STATUS:

G & G DATA PURCHASE Drilled exploratory well Rafay-1, T.D 3671m

WORK IN PROGRESS: Re-mapping of Rafay structure Stratigraphic play evaluation 2D seismic data acquisition will be undertaken after stratigraphic play evaluation

SML prospectivity in vicinity

Location Map


PETROLEUM SYSTEM:

SOURCE

Sembar Formation of Early Cretaceous age is

an established source rock in the Central

Indus Basin

RESERVOIR

Lower Goru of (Early Cretaceous)

Lower Eocene, Sui Main Limestone (SML)

Dunghan limestone (Paleocene)

Chiltan limestone (Middle Jurassic) and

Pab Sandstone (Late Cretaceous)

SEAL

Ghazij Shale (Early Eocene)

The Upper Goru and inter bedded shales

TRAP

Structural and Stratigraphic

SALIENT FEATURES:

Goru/Sembar Stratigraphic Play

Significant gas discoveries in the

surrounding area ( Badar, Miano,

Rehmat, Mari, Kadanwari, Sawan

and Qadirpur).

Well established gas distribution

infra-structure.

Good quality gas with calorific value

of around 850 BTU/SCF


Seismic Section showing clinoforms in Sambar Formation


NEW LARKANA BLOCK


LOCATION: Larkana, Shikarpur & Jacobabad in Sindh,

Jhat pat in Balochistan

AREA: 2426 Km2


WORKING INTEREST: PEL 100% (OPERATOR)


RESERVE EXPOSURE: 200-300 BCF

WORK COMMITMENT: 100 Lkm 2D Seismic and drilling

of three exploratory wells

WORK COMPLETED: G & G data purchase

G & G studies

WORK IN PROGRESS: 2D seismic data acquisition is planned before

drilling a well

Discovery Map

Location Map


PETROLEUM SYSTEM:

SOURCE

Aloizai formation-potential (Early Jurassic)

Sembar shale-proven (Early Cretaceous)

Ghazij Shales-potential (Early/Middle Eocene)

RESERVOIR

Lower Eocene, Sui Main Limestone (SML)

Dunghan limestone (Paleocene)

Chiltan limestone (Middle Jurassic) and

Pab Sandstone (Late Cretaceous)

SEAL

Ghazij Shale (Early Eocene)

Thick Paleocene and cretaceous shales

can also act as seal

TRAP

Structural and Stratigraphic

SALIENT FEATURES:

Two Leads are identified in the northern

part of the block at level of SML

Significant gas discoveries in the

surrounding area (Haseeb-1, Hasan,

Sadiq, Khanpur1, Kandra , Mehar and

Mazarani).

Gas distribution infra-structure well

established

Good quality Gas having calorific value

of up-to 807 BTU/Scft (Haseeb-1 well)

Middle/Lower Indus Basin Tectono-Stratigraphy

Seismic line through Lead “A” & Lead “B”


BADIN IV NORTH BLOCK


LOCATION: Badin and Thatta, Sindh Province

AREA: 2709.77 km2 (Excl.ML Area)


WORKING INTEREST: 47.5%

PLAY TYPE: Tilted fault block

EXPECTED HYDROCARBONs: Oil / Gas & Condensate

RESERVES EXPOSURE: 25-50 MMBO

50-500 BCF

WORK COMMITMENT: Acquisition of 100 lkm 2D seismic

& three exploratory wells

3D Seismic Coverage Map

Location Map


G & G studies completed

WORK IN PROGRESS: Acquire 2D seismic data planned before

drilling well


Stratigraphic Column & Petroleum System

PETROLEUM SYSTEM:

SOURCE

Sembar Formation of early Cretaceous age is a

prolific source rock in Lower Indus Basin. In

addition intra-Lower Goru shales of Cretaceous

age also have source potential.

RESERVOIR

Lower Goru sands of Cretaceous age are proven

reservoir in the area and surrounding fields

SEAL

Upper Goru Claystone/Marl provide regional

seal. Additional thick shales sequences within

the Lower Goru provide both vertical and lateral

seal across the fault block

TRAP

Tilted Fault Blocks

SALIENT FEATURES:

4493 lkm of 2D vintage seismic data & 993 lkm

of 3D seismic data was purchased

300 lkm 2D seismic data was acquired by PEL

Proximity to the producing Badin Oil & Gas

fields

Two wells have been drilled in the block.

Jamali Deep-1 was tested as a non-commercial

discovery; however Wahid-1 was a dry well.

One more lead has been identified in the

block

Seismic Section showing structural style in the Badin IV North Block



PROVINCE: Badin and Thatta, Sindh Province

AREA: 2060.55 km2 (Excl.ML Area)


WORKING INTEREST: PEL 47.5% (Oprator)

FHL 27.5%

GPX 25%


EXPECTED HYDROCARBONS: Oil /Gas & Condensate

RESERVES EXPOSURE: Oil: 50-100 MMBO, Gas: 250-500 BCF

WORK COMMITMENT: Acquisition of 100 lkm 2D

seismic & 4 Exploration wells


G & G studies completed

WORK IN PROGRESS: Planning to drill exploratory well in first quarter of 2013

BADIN IV SOUTH BLOCK

Location Map

Prospectively Map


PETROLEUM SYSTEM

SOURCE

Sembar Formation of early Cretaceous age is


addition intra-Lower Goru shales of

Cretaceous age also have source potential.

RESERVOIR

Lower Goru sands of Cretaceous age are

proven reservoir in the area and surrounding

fields

SEAL

Upper Goru Claystone/Marl provide regional

seal. Additional thick shales sequences

within the Lower Goru provide both vertical

and lateral seal across the fault block

TRAP

Tilted Fault Blocks

Stratigraphic Column SALIENT FEATURES:

• 2672 line km of 2D vintage seismic

data & 623 line km of 3D seismic

data was purchased

• 483 line km 2D seismic data was

acquired by PEL

• Proximity to the producing Badin Oil

& Gas fields

• Four potential and economically

viable prospects have been identified

in the block.

Petroleum System Event Chart


OFFSHORE INDUS J BLOCK

AREA: 2436 Sq Km

LOCATION: 200 km south of Karachi in Arabian Sea

WORKING INTEREST: PEL (Operator) 100% (BP is assigning its

33% interest to PEL with the approval of

GOP)

PLAY TYPE: Channel, sheet sands/carbonate buildups

(Paleogene-Neogene)

HYDROCARBON PLAY: Gas/Condensate

RESERVES EXPOSURE: 25-30 TCF

WORK COMMITMENT: 186 work units (WU). One WU ≈10 line km 2D

or 1 Km2 3D Seismic

WORK COMPLETED: 936.5 line km 2D and 550 Km2 3D (643.6 WU)

SEISMIC PROCESSED 550 Km2 3D cube to PSDM

DELINEATED PROSPECTS Two on 3D cube and three on 2D data

Offshore Indus Activity Map

Location map


PETROLEUM SYSTEM

SOURCE ROCKS

Paleocene-Eocene and Lower Miocene.

RESERVOIR ROCK

Channel-sheet sands of Miocene to Oligocene

SEAL

Oligocene-Miocene Shales

TRAP

Structural and stratigraphic.

Leads/prospects mapped on 2D

Geoseismic model showing hydrocarbon maturity windows

2D line showing J-1, J-2 and J-3 lads/prospects

SALIENT FEATURES:

Indus Fan is world’s largest fan

Structural cum stratigraphic

play

Amalgamated channel and sheet

sand system with good reservoir

properties

Good quality gas tested in Pak

Can-1


KALOI BLOCK

GRANT DATE: September 22, 2007

LOCATION: Badin & Mithi in Sindh

AREA: 2485.14 km2


WORKING INTEREST: PEL 100%


EXPECTED HYDROCARBONS: Oil/Gas & condensate

RESERVES EXPOSURE: OIL 25-50 MMBO, GAS: 250-300 BCF

WORK COMMITMENT: Acquisition of 300 Line km 2D

seismic & two Exploration Wells

Petroleum System Event Chart

Location map


PETROLEUM SYSTEM

SOURCE

Sembar Formation of early Cretaceous age is a


addition intra-Lower Goru shales of Cretaceous

age also have source potential.

RESERVOIR

Lower Goru sands of Cretaceous age are proven

reservoir in the area and surrounding fields

SEAL

Upper Goru Claystone/Marl provide regional seal.

Additional thick shales sequences within the

Lower Goru provide both vertical and lateral seal

across the fault block

TRAP

Extentional tectonics styles & stratigraphic traps

SALIENT FEATURES

• Lies within Badin which is a prolific oil and gas

producing region.

• 685 lkm of 2D vintage seismic data purchased

• Four leads have been identified within the block

• Sember is a regionally distributed source rock

• Lower Goru Sands are the most prolific producing

horizon of the Lower Indus Basin.

• There are several fields to the west of the Kaloi

Block where Lower Goru Sands are producing Oil &

Gas.

Stratigraphic Column

Leads Map of Lower Goru Sands


JHANGARA BLOCK

GRANT DATE: April 27, 2005

LOCATION: Dadu District, Sindh Province

AREA: 357.19 km2

WORKING INTEREST: PEL 40 % (Operator)

OGIL 60 %


EXPECTED HYDROCARBON: Gas & Condensate


RESERVES EXPOSURE: 300 BCF Gas

WORK COMMITMENT: One exploratory well up to 900 m or Pab Formation

whichever is shallower

200 line km 2D seismic data acquisition

WORK COMPLETED: Seismic data purchased: 253 line km 2D

WELLS DRILLED: Maliri-1 well

WORK IN PROGRESS: In house G & G studies

Planning to acquire seismic before drilling a well.

Location Map

Map showing hydrocarbon prospectivity of the surrounding fields

2.32 TCF

1.6 TCF

500 BCF


PETROLEUM SYSTEM

SOURCE

Sembar shales (E. Cretaceous)

RESERVOIR

Mughal Kot and Pab Sandstone (Cretaceous)

SEAL

Mughal Kot (Cretaceous), Khadro (Paleocene)

& Ghazij shales (Eocene)

SALIENT FEATURES

Nearby discoveries are Zamzama (2.32

TCF) & Bhit (1.52 TCF) producing from

Pab and Bhadra 500 BCF are producing

gas from Mughal Kot

Gas pipelines exist close to the block

Discovered gas has calorific value of

between 836 to 945 BTU/SCF

Stratigraphic column showing petroleum system

Geo-seismic cross section Interpreted seismic section



PROVINCE: Hyderabad, Matiari & Dadu Districts, Sindh Province

AREA: 199.26 km2


WORKING INTEREST: PEL – 100% (operator)

PLAY TYPES: Structural

WORK COMMITMENT: 250 L km 2D Seismic and 3 Exploratory wells

WORK COMPLETED: Seismic Acquired: 176 km 2D

Seismic Data Purchased: 305 L km 2D

Seismic Data Reprocessed: 100 km 2D

Well Data Purchased: 8 wells

WORK IN PROGRESS: Planning to drill Matiari-1 well

MIRPUR KHAS WEST BLOCK

Location Map Prospectively Map


PETROLEUM SYSTEM

SOURCE

Sembar shale (Early Cretaceous)

RESERVOIR

Sand Below Talhar Shale-SBTS

Sand Above Talhar Shale-SATS

SEAL

Upper Goru Shale and Lower Goru

Intra-formational Shales

TRAP

Structural

SALIENT FEATURES

• Matiari prospect is a tilted fault block with

an area of 12km2, located within Sembar-

Goru play fairway

• Main reservoir objective is the shoreface

Basal Sands of Lower Goru

• Source is Talhar Shales of Lower Goru

and Sembar Formation

• The Block is close to OGDCL, OPI and

UEPL gas & gas condensate fields

• Gas discovered in the vicinity has a

calorific value of around 950 BTU/SCFT

• Matiari prospect is located close to gas

transmission infrastructure

Seismic line passing through Matiari-1 Prospect

Stratigraphic column and Petroleum System


SANGHAR EAST BLOCK


LOCATION: Sanghar & khairpur in Sindh Provence

AREA: 2493 km2

PROSPECTIVELY ZONE: III

WORKING INTEREST: PEL 100%


RESERVES EXPOSURE: 250 - 300 BCF

WORK COMMITMENT: 4 Exploratory Wells and

200 line km 2DSesimic

Location Map

Lower Goru formation, primary reservoir in the

region



SALIENT FEATURES

• 524 line km 2D vintage seismic and two wells

data was purchased and interpreted

• One structural lead has been identified within

the block

• Sember is a regionally distributed source

rock.

• Lower Goru Formation is a proven reservoir

in this region

Generalized Stratigraphy of Lower Indus Basin

PETROELUM SYSTEM:

SOURCE

Sember Formation (Early Cretaceous)

RESERVOIR

Lower Goru sands of Early Cretaceous)

SEAL

Upper Goru Claystone/Marl provides regional

seal. Intraformational shales within Lower

Goru Formation

TRAP

Structural and stratigraphic play



SALAM BLOCK

GRANT DATE: December 20, 2003

LOCATION: Jacobabad and Ghotki districts, Sindh Province

AREA: 200.22 km2

WORKING INTEREST: PEL 37.5 % (Operator)

FHL 37.5 %

GPX 25 %

PLAY TYPES: Structural

PROSPECTIVELY ZONE: III


WORK COMMITMENT: 30 lkm 2D seismic, drill one exploratory well

WORK COMPLETED: Seismic acquired:134 lkm 2D

Seismic data purchased: 520 lkm 2D

Seismic data reprocessed: 520 lkm 2D

Well data purchased: 3 wells

Work in progress: In house G & G studies

Tentative work program: To drill Ibrahim-1 well at SML level

Location Map

SML prospectively in vicinity


PETROLEUM SYSTEM

SOURCE

Sember Shales

RESERVOIR

Sui Main Limestone and Sui Upper Limestone

SEAL

Sui, Ghazij & Sirki shales

SALIENT FEATURES

Ibrahim Prospect with potential resource

exposure of over 50 BCF

Second lead is the southwest of Ibrahim

prospect but outside the river channel.

To confirm the southern closure of the

southwestern lead, it is proposed to acquire 30

lkm 2D seismic and to re-process 60 lkm 2D

seismic

Salam Block is located in an area where the

main gas pipelines are passing within a distance

of 15 kms and any gas discovery can be

developed in a cost effective manner



Depth structure map of Proposed well


PERMITS IN MOROCCO

EXPLORATION PERMITS IN MOROCCO

Exploration Permits Area (Km²)

WIOs

Haha-1 1608 PEL (Operator) 75 % ONHYM 25% (Carried)





AREA: 4919 km2

LOCATION: About 550 km southwest of the capital Rabat

WORKING INTEREST: PEL 75 % (operator)

ONHYM 25 % (carried)


RESERVES EXPOSURE: 300bcf

WORK COMPLETED: Seismic acquired: 140 sq km 3D

Seismic data reprocessed: 132 L km 2D

WORK IN PROGRESS: In house G & G studies

To drill exploratory well Tamanar-1

Depth structure map on different horizon

HAHA PERMITS, ESSAOUIRA BASIN,

MOROCCO


PETROLEUM SYSTEM

SOURCE Silurian and Devonian shales and Oxfordian basal shales

RESERVOIR Triassic and Paleozoic sands and Jurassic carbonates and Sandstone

SEAL Triassic Salt/Jurassic Anhydrite and shales

SALIENT FEATURES

Tamanar-1 prospect at Triassic level is a

robust structure with an area of about 18

km2

Two more structures at

Callovian/Argovian and Liassic Level

have been delineated

Several surface anticlinal structures

indicate significant upside potential

Morocco has an investment friendly

fiscal regime offering numerous

incentives.

The gas price for 2010 was US $

7.3/MMBTU and oil price was US $

74/BBL

Corporate tax holiday is allowed for ten

consecutive years of regular production




HEALTH, SAFETY AND ENVIRONMENT


Environment Protection Policy

PEL’s Strategic objectives include the safety and protection of Environment, as a core activity.

PEL continues to control and minimize the risks to our environment through a policy of deploying company resources to develop and establish safe working procedures. We practice strict compliance with all Environmental laws.

Storage and disposal of Hazardous substance is strictly controlled in accordance with national laws and supplier's recommendations. Pollution due to solid, liquid and gaseous waste is eliminated through the recommended disposal systems.

Restoration of the land is achieved by working around tree clusters and topsoil is preserved/re-laid after completion of Operations.

PEL management and employees are committed to safe environmental management and low impact/pollution practices/procedures for the work. Site Managers are required to spread environmental awareness within the employees. Suggestions and comments are appreciated. Improvements in performance and compliance are sustained through an active interaction program and audit contributions are acknowledged and rewarded while violations are attended to promptly.

PEL feels proud to be a committed environment-friendly company.

Zaheeruddin Chairman & Chief Executive


CORPORATE SOCIAL RESPONSIBILITY (CSR)

Message from Chairman

A responsible corporate entity, PEL remains committed to enhancing the well being of the underprivileged communities in and around its concessions and lease areas, by providing clean drinking water, education, health facilities, local employment and infrastructure development. Every year, millions of dollars are being spent on community welfare programs. It gives me great pleasure to confirm that thanks to our sustained community welfare programs, PEL has succeeded in improving the well being of the communities living in and around our concessions in addition to providing them health and education facilities. PEL is committed to continuing these efforts into the future.

Zaheeruddin Chairman and Chief Executive


CORPORATE SOCIAL RESPONSIBILITY (CSR) As per the CSR policy outlined by the Chairman, PEL as a responsible corporate entity is fully aware and committed to its social responsibility towards the local communities. • PEL has established a track record of implementing social welfare schemes in its area of operations • PEL made a significant contribution (US$ 29,750) in construction of eight classrooms at HMB Trust’s Institute of Science & Technology, Shikarpur • PEL undertook installation of Electric Water Coolers at various schools, colleges, libraries and parks (US$ 33,688) • PEL made a major contribution (US$ 456,260) in the establishment of regional Petroleum Technical Training Institute at Khairpur, Sindh


CORPORATE SOCIAL RESPONSIBILITY (CSR) RECENT SOCIAL WELFARE ACTIVITIES

Provision of funds for the establishment of Petroleum Training Institute, Khairpur Sindh



Provision of uniforms for orphan children at Bait-ul-Mal Pakistan



Donated a vehicle to a well reputed NGO



FLOOD RELIEF OPERATIONS Unprecedented and devastating floods hit the entire country in the monsoon months of July and August, 2010. People living in the vicinity of Block-22 & Badar fields were seriously affected by these floods. PEL in line with its CSR Policy provided relief to the flood affectees by taking the following actions:

• Supplying cooked meals

• Ration and other necessities like kitchen utensils

•boats for rescue works (one wooden boat and one fiber glass motor boat with 25HP engine)

• Organized distribution schemes of emergency food packs and relief goods (cooked meals and bags (20 kg each) containing flour, rice, sugar, grain seed, cooking oil, milk and tea) PEL had organized field trips of qualified medical teams through mobile dispensaries for helping the affected people against exposure to water borne and other diseases.


FLOOD RELIEF OPERATIONS


TRAINING POLICY

PEL is committed to imparting skills related to oil & gas

industry requirements. It has proudly invested over One Million

US Dollars during the last four years (i.e. 2008 – 2011) on

training and development of government officials and its

employees. The main objective of training and development is

to help develop key competencies which enable individuals to

perform current or future jobs successfully. All training and

development programs are geared towards:

•Strengthening the job skills/knowledge of government officials

and its employees

• Key Training Activities attended by our employees during 2011

were as follows:

• Oil & Gas Summit, Asia – Malaysia

•Seminar on Testing through New Technology arranged by

Schlumberger – Islamabad, Pakistan

• Procurement & Inventory Management arranged by Skill

Development Council

• Wireline Log Interpretation arranged by OGTI – Islamabad,

Pakistan

• Business Writing Skills arranged by Skill Development Council


STATUTORY PAYMENTS TO THE GOVERNMENT

PEL has contributed an amount of over US$ 13 million

from July, 2003 till January 31, 2012 on account of

statutory payments to the Government of Pakistan

covering:


EXPECTED POTENTIAL RISE

To exploit knowledge and evolving technology and pursue international opportunities for exploration and acquisition of production assets to become a leading E&P company

To attract serious E&P companies into Joint Ventures Partnerships through farming into its exploration and production assets in Pakistan and overseas, especially Morocco

To aim at an aggressive corporate growth through prudent goals oriented strategies and risk management spreading the risks and sharing the rewards

FUTURE OUTLOOK

SENIOR MANAGEMENT

Mr.

Chairman & Chief ExecutiveZAHEERUDDIN

Mr. Director

ZAFAR IQBAL Mr. Director

MOEENUDDIN Mr. SHAHZAD ZAHEERDirector

Mr. SHAHBAZ ZAHEERDirector

PEL FLASHCGGVERIT S

SH HZ D

A Shahzad & CGGVeritas JV

Mr. Zafarullah Khan

(Power Division)Sr. Executive Vice President

Mr. Tariq Fatemi(Ambassador (R)

Sr. Executive Vice President (Int’l)

Mr. Munir AhmedAdvisor

Mr. Shahid AhmadAdvisor

Mr. Mohammad Ali MirzaVice President Minerals

Mr. Azar-ul-IslamVice President Business Development

Dr. GULFARAZ AHMADChief Operating Officer

Mr. Khalid RahimGeneral Manager Production

Dr. Mahmood Ul Hassan Senior General Manager

Exploration

Mr. Azam MalikGeneral Manager Exploration

Morocco

Mr. S. A. RehmanSenior General Manager

Technical

Mr. Khawaja ManzoorGeneral Manager

(Procurement)

Brig (R) Mohammad SaleemGeneral Manager

Coordination

Mr. Aamir HameedGeneral Manager

Taxation

Mr. Adeeb Ali Mirza Manager Finance

Mr. Talha Waheed Manager Finance & JV

Mr. Muhammad JamilGeneral Manager Drilling

Air Cdre. (R) M. Yousaf JavedDeputy General Manager

(Finance)

Mr. Muhammad MaroofGeneral Manager Geophysics

Mr. Noor Mohammad KhanGeneral Manager (Mining)

Mr. Shahid-ul-KhairiGeneral Manager

Exploitation & Exploration

Syed Haider aliGeneral Manager Power

Dr. Rafiq ShaikhGeneral Manager

Process

Mr. Haider A li S hahManager Prospects Evaluation

Mr. S haikh ManzoorManager

Social Works

C h. Nazeer A hmedManager Interpretation

Mr. A mjad Waheed Qures hiManager Geological Synthesis

Geologist

Mr. Muhammad YousafManager

Prospects Generation

Mr. Salman RashedBusiness Development

Consultant

L t C ol (R ) A zhar IqbalManager HR

C ol (R ) S hujaat G humman Manager Training &

Social Welfare

Mr. Mozaffar A li K hanManager Production

Mr. Naved A kramConsultant

S yed A zim S abirManager Graphics

PEL Profile, December, 2009 - Shahzad · PDF filePEL Profile, November 2012 5 BRIEF HISTORY...

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