It is understood that OMV Maurice Energy Ltd has discovered gas in Mitha 1 new-field wildcat (NFW) well within the Mubarak (Block 20) 2769-4 EL (Middle Indus Basin) onshore concession during late September 2018 after carrying out testing. The well was drilled to a TD of 3,610 m, reached in late August.   Mitha 1 was spudded on 12 July 2018 using the Schlumbergerâs SLR-15 land rig with a prognosed TD of 3,562 m in the Cretaceous. It was drilling at 1,731 m depth by the end of July 2018.  The licence currently covers an area of approximately 1,000 sq km and is located in the Sindh province. The equity split for Mubarak EL is as follows: OMV Maurice Energy Ltd (57%, operator), Eni Pakistan Ltd (38%) and Government Holdings (Pvt) Ltd (GHPL) (5%).    OMV had announced on 28 February 2018 that it signed an agreement with United Energy Group Ltd (UEG) for selling its upstream business in Pakistan to Dragon Prime Hong Kong Ltd (subsidiary of UEG) at an agreed sale price of USD 193 million (EUR 157 million). The agreement involves five development and production leases (D&PL) and five exploration licences (EL), including Mubarak EL. The transaction is expected to be completed by the end of 2018.    Â     Background Information    The Mubarak EL originally covered an area of 2,612 sq km and was awarded to Petronas Carigali (Pakistan) Ltd (57%, operator), Lasmo Oil Pakistan Ltd (name changed to Eni Pakistan Ltd from mid-2003) (38%) and Government Holdings (Pvt) Ltd (GHPL) (5%), on 14 April 1999. The work programme for the initial three-year exploration phase (with a minimum financial commitment of USD13 million) is believed to have included 1,000 km 2D seismic acquisition and the drilling of three exploration wells.     A total of 674 km 2D seismic was acquired over the block between November 1999-February 2000 and the acquisition of a further 352.35 km 2D seismic (effectively satisfying the initial phase commitment) was completed between July-October 2001.     The first well drilled by Petronas on the acreage, Rehmat 1, was suspended as a gas discovery at a depth of 3,536 m in the Lower Goru Formation in August 2001, having tested at a maximum rate of 25.6 MMcf/d through a 48/64" choke at a wellhead flowing pressure of 2,445 psi from the same formation. No gas-water contact was encountered and initial gas analysis indicated a small amount of carbon dioxide and negligible hydrogen sulphide.     A second exploration well on the block, Khushbakht 1, was subsequently P&A at a depth of 2,930 m in the Lower Goru Formation in mid-December 2001 and a successful appraisal well to its earlier discovery, Rehmat 2, was suspended at a depth of 3,599 m in the Lower Goru Formation in May 2003 - the well believed to have flowed 30 MMcf/d through a 128/64" choke.     Having previously been granted an extension to the end of 2002, the licence was granted an additional six month extension to the initial exploration phase with effect from 1 January 2003 and a further six week extension is believed to have been granted with effect from 1 June 2003 - presumably to allow for the drilling and evaluation of the third commitment well on the acreage.     The well, Rehan 1, was plugged and suspended (pending further evaluation) on reaching a depth of 3,475 m in the Lower Goru Formation in July 2003 - good gas shows believed to have been encountered - and the licence was granted a further extension up to 30 June 2004.     Petronas was awarded a Development & Production Lease - the Rehmat D&PL- over the Rehmat 1 gas discovery for a period of 13 years with effect from 22 March 2004. As a result of this, the area of Mubarak EL was reduced from the original 2,612.09 sq km to 2,398.95 sq km.    An additional six month extension up to 31 December 2004 was subsequently granted to allow for a further seismic programme to be undertaken over the acreage - a total of 78.4 km 2D and 544 sq km 3D seismic being acquired between August-December 2004.     The licence was granted its first one-year renewal period to the initial exploration phase with effect from 1 January 2005 - a part relinquishment of the block (319.59 sq km) also being made at the time (affecting the north western and south eastern parts of the acreage), as a result of which the licence area was reduced to 2,079.36 sq km. A six month extension (extended by a further six months and an additional seven months) was subsequently granted - presumably to allow for the drilling of the Saqib 1 well, which was prematurely P&A at a depth of 1,739 m in the Palaeocene in February 2007 following mechanical problems.     The licence was granted an additional two month extension to the first one-year renewal period with effect from 11 August 2007 - presumably to allow for the drilling of a re-drill (Saqib 1A) on the acreage - and was granted its second one-year renewal period with effect from the date of rig release. The Saqib 1A well was reported to have flowed 25.15 MMcf/d and 53.3 bc/d, through an 80/64" choke, on reaching a final TD of 3,780 m in the Lower Goru Formation in February 2008.     On 9 August 2009, Petronas plugged and abandoned the Putra 1 new-field wildcat as a dry hole at 3,350 m TD. The well had been spudded on 2 July 2009 with clastic objectives. The primary target of the well was the K55 and K60 sands, and although the well was untested, wireline logging was performed. All sand was logged were water wet.     Petronas drilled the Saqib-2 appraisal well, which was plugged and abandoned in October 2009 after reaching a final TD of 3,550m by mid-month. It was drilled to appraise the Saqib 1A discovery. The company was granted a one-year extension to the second renewal period of the licence with effect from 25 March 2010.     A Sale and Purchase Agreement between Petronas and OMV was signed on 20 September 2010, according to which OMV agreed to acquire all exploration and production interests from Petronas in Pakistan. These include the Mubarak and Mehar exploration licences and the Mehar and Rehmat (also known as Mubarak D&PL) development and production leases. The Daphro EL onshore concession, was however, not part of that deal.    Following the acquisition of Petronasâ interest in the licence by OMV with effect from 11 July 2011, the equity split is as follows: OMV Maurice Energy Ltd (57%, operator), Eni Pakistan Ltd (38%) and Government Holdings (Pvt) Ltd (GHPL) (5%).Â     A 12-month extension to the second one-year renewal period of the licence was granted with effect from 25 March 2011. An additional six-month extension to the second one-year renewal period of the Mubarak EL was granted with effect from 25 March 2012. A third one-year renewal has been granted with effect from 25 September 2012 which also resulted in area reduction to 1,348 sq km.    Towards late May 2013, OMV plugged and abandoned the Rehan 2 exploration well, after reaching a final TD of 3,550 m earlier in the month. OMV Maurice was granted a six-month extension to the third one-year renewal period of the Mubarak EL from 25 September 2013 to 24 March 2014.     OMV drilled Kohar 1 new field wildcat (NFW) well in the block which was plugged and abandoned during June 2015 at a TD of 3,495 m after conducting unsuccessful drill stem test.    OMV Maurice was granted an additional 12-month extension to the third one-year renewal period of the Mubarak EL effective from 25 March 2014 to 24 March 2015. It was followed by a further six-month extension effective 25 March 2015, and then an additional six-month extension from 25 September 2015 to 24 March 2016. It is understood that contract area was reduced to 1,000 sq km during 2016.    OMV acquired 129 line km 2D seismic over the block during December 2016 - February 2017 period using the Bureau of Geophysical Prospectingâs (BGP) âBGP-2273â seismic crew.    The company was granted an 18-month extension to the third one-year renewal period of the Mubarak EL from 24 March 2016 to 23 September 2017. It was followed by a further one-year extension from 24 September 2017 to 23 September 2018.
Pakistan (Kirthar Fold Belt) Mehar