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04
Directors’ Review
In the name ofALLAH, TheMost Gracious, TheMost Merciful
Assalam-u-Alaikum!
The Directors have pleasure in presenting a brief review of the financial results and operations of the
Company for the six months ending December 31, 2016.
During the period, the Company made a profit after tax of Rs. 4,655.7 million (December 31, 2015:
Rs. 3,671.4 million), which is higher by 26.8 % as compared to the corresponding period last year. The
profit translates into earning per share of Rs. 19.68 (December 31, 2015: Rs. 15.52 per share). Net
sales of Rs. 12,804 million are higher by 4.6%, mainly because of increased volumes of crude oil and
increased gas prices in comparison to the corresponding period last year. Crude oil and LPG
production increased by 7.6% and 11.89% respectively. During the period the Company made a
consolidated profit after tax of Rs. 4,769.4 million (December 31, 2015: Rs. 3,684.9 million) which
translate into consolidated earning per share of Rs. 20.07 (December 31, 2015: Rs. 15.50 per share).
The following is a comparison of production from the Company’s fields, including proportionate share
fromall operated and non-operated joint ventures:
Crude oil/Condensate (US Barrels)
1,107,509
Gas
(Million Cubic Feet)
13,741
LPG
(Metric Tonnes)
25,361
Sulphur
(Metric Tonnes)
274
Solvent oil
(US Barrels)
14,679
The Company’s share in production, including that from joint ventures, for the period under review
averaged 6,476 barrels per day (bpd) of crude, 74.61 million standard cubic feet per day (mmscfd)
of gas, 50 bpd of solvent oil, 154.21 metric tonnes per day (MTD) of LPG and 1.51MTD of Sulphur.
At Balkassar (100% owned by POL), evaluation of 2D/3D seismic data at basement level and 3D
seismic data acquisition designing report has been completed.
At Tal block, (operated by MOL, where POLhas a pre-commerciality share of 25%),
Mardankhel-1 well has been connected to the production line and is producing around 42 million
cubic feet of gas and 3,845 barrels of condensate per day.
Mardankhel-2 well was spuded on September 09, 2016. Cementing job of casing at 10,892 ft is in
progress. The prognosed target depth of the well is ± 15,774 ft.
Mardankhel-3 well was spuded on June 02, 2016 and the target depth of 15,814 ft was achieved
successfully. Presently, well testing is in progress.
Maramzai-4 well was spudded on August 21, 2016 and the target depth of 9,875 ft was achieved
successfully. The well tested and produced 604 barrels of condensate and 23.57 million cubic feet
of gas per day.
The rig has beenmoved to spudMakori East-06 (Development Well).
Financial results
Production
1,191,851
13,730
28,376
279
9,202
Exploration and development activities
Producing Fields
Dec. 31, 2016
Dec. 31, 2015
Six months period ended