Oil discovered in Essa Khel Mianwali

[niaz]

Yesterday I saw a news line in the ARY News channel. It said that a new oil bearing formation has been discovered in the Essa Khel area of Mianwali. Expected to produce 1,700 barrels per day of crude. Does anyone have more details?

 

[VCheng]

MGCL discovers big oil reservoir in Karak | Business Recorder

MGCL discovers big oil reservoir in Karak
October 14, 2011
ABDUL RASHEED AZAD

Mari Gas Company Limited (MGCL) has discovered a big oil reservoir in Karak district of Khyber Pakhtunkhwa initially with a production capacity of 1,700 barrels per day. The Halini well was spud on January 07, 2011. The well has been drilled up to a depth of 5,350 meters. During the initial short duration tests, the well flowed at the average rate of 1,700 barrels per day crude oil of API gravity 26 at 32/64" choke size.

Managing Director MCGL General Raza Muhammad Khan (Retd) informed Dr Asim Hussain Federal Minister for Petroleum and Natural Resources in a meeting held here on Thursday. The minister directed the MD MGCL to supply 44 MMSCFD gas from Mari Deep Reservoir to Sui-Northern Gas Pipelines limited (SNGPL). The company has made a significant crude oil discovery with the additional potential of associated gas, during the drilling of Halini well (near the village Kamar Sar, Tehsil Essa Khel) in its Karak exploration block. The block is located at the boundaries of KP and Punjab provinces (between the districts of Karak and Mianwali).

An official of MGCL talking to Business Recorder said that gas exploration is also expected from the site and this is first discovery in the last two years. At present, Pakistan is producing only 15 percent ie 65,000 barrels per day of oil locally and the rest is imported from Gulf countries, the discovery would help reduce the import bill of Pakistan. The country is also facing severe shortage of natural gas up to 2200 MMFCD which would jump to 3200 MMCFD in upcoming winter and currently the government is managing it through gas load management plan and increase in gas price.

The discovery is estimated to have huge foreign exchange savings, which could range in billions of dollars at the current oil price trend and thus contribute towards the nation's endeavour to reduce dependence on imported energy, MD MGCL informed the minister.

The flow rates from the well are expected to increase with further testing and stimulation treatment, which is planned to be conducted, shortly. The prospect is expected to spread over a large area and the company is planning to drill additional wells to delineate the exact extent, size and reserves potential of this discovery.

The Karak block was granted to MGCL, as operator and 100 percent interest owner, on April 14, 2005. Subsequently, MOL Pakistan Oil & Gas Company B.V. (an E&P Company of Hungary) acquired 40 percent interest share in the block from MGCL.

MGCL has also made a gas/condensate discovery last year in its 100 percent operated Sujawal block in Sindh, which is being put on test production by installing early production facilities. MGCL is also proud of discovering the first ever oil in Balochistan when it's Ziarat well flowed crude oil which is currently being evaluated. Other recent discovery of gas by MGCL in its Sukkur block has also been put on test production for gas supply to SNGPL.

Copyright Business Recorder, 2011

 

[TARIQ BN ZIYAAD]

Assalam alaikum

Yaar again, " a big oil reservoir " give us an estimated number

i m not good in economics don't know 1700 barrel a day is econimical

TARIQ

 

[niaz]

With $100 per bbl oil any well is economically viable. 1700 bbl per day is a medium size producer. Generally a good producer well should pump about 5000 per barrel per day of crude oil.

This is certainly not a big reservoir but it all adds up.

 

[Hyde]

something is always better than nothing

But I doubt the government would utilize its resources. I remember the video documentary where the oil could be seen with your naked eyes in some part of Balochistan or other province and the government took little interest in discovering the oil and gas from that area. People were filling up the bottles of oil and burning to prepare food and the locals were saying they fill up the gallons and sell outside the city to earn their bread n butter. When the government is busy discovering oil wells and not doing anything for existing ones... I doubt what will happen to this latest discovery

 

[Faiez]

With $100 per bbl oil any well is economically viable. 1700 bbl per day is a medium size producer. Generally a good producer well should pump about 5000 per barrel per day of crude oil.

This is certainly not a big reservoir but it all adds up.

no thats not true...

the cost of extracting the oil wud depend mainly on the terrain above and the depth of the well ( how deep the oil is ).
the deeper the oil, the more expensive it is to extract it. thats the general rule. there are other factors as well..

 

[Omar1984]

Mianwali is the place where the future leader of Pakistan, IMRAN KHAN, is originally from.



Our western provinces are blessed with oil and gas. I dont know why we are just not making use of our natural resources.

 

[niaz]

no thats not true...

the cost of extracting the oil wud depend mainly on the terrain above and the depth of the well ( how deep the oil is ).
the deeper the oil, the more expensive it is to extract it. thats the general rule. there are other factors as well..

Dear Sir,

I personally know that many wells in Canada that were closed down as production had dwindled down to about 100 to 150 bbls per day have now been opened up. Canadian oil sells at about $80 per bbl. Production/operating cost of such tiny wells is less than $40 per bbl, this leaves a profit of nearly a $4K per day or $1.50 million per year from one well!

FYI an estimate of the cost of production of crudes in various countries in noted below.


Quote

The International Energy Agency (IEA) -- in its latest
November 2008 world energy outlook -- gave the following
estimates for the all-in costs of producing oil from various
types of hydrocarbons in different parts of the world:

Oilfields Estimated Production
/source Costs ($ 2008) per bbl.

Mideast/N.Africa oilfields 6 - 28
Other conventional oilfields 6 - 39
CO2 enhanced oil recovery 30 - 80
Deep/ultra-deep-water oilfields 32 - 65
Enhanced oil recovery 32 - 82
Arctic oilfields 32 - 100
Heavy oil/bitumen 32 - 68
Oil shales 52 - 113
Gas to liquids 38 - 113
Coal to liquids 60 - 113

Source: International Energy Agency World Energy Outlook 2008

Unquote

You will note that most expensive production cost is in the Arctic followed by those fields that need enhanced gas reinjection and ultra-deep water wells. Oil shale, gas to liquid and coal to liquid does not as these require processing before oil can be used as crude.

I would guess that in Pakistan, where one does not need enhanced recovery methods, actual production cost from the well head would be less than $30 per barrel.