Net sales of the company for the year under review rose to
PKR463.7 billion, up 12%YoY, mainly due to higher wellhead prices. The average
realized prices for crude oil slipped to US$68.7/bbl, down 4.3%YoY, while
realized gas prices rose to PKR712.9/mmbtu, up 17%YoY.
Production activity during the year was reported at 33,100
bpd of crude oil (up 2%YoY), 717mmcfd of gas (down 6.1%YoY) and 717tpd of LPG
(down 0.4%YoY), respectively.
Forced curtailments by SNGP and reduced intake by power
companies led to fall in oil and gas output during the year.
Production was notably impacted in aging fields including
Nashpa, Chanda, Dhok Hussain, and Uch, with output declining by 138,500 barrels
of oil and 19,600 mmcf of gas, respectively.
Company operated in 54 Exploration Blocks (22 blocks with
full ownership and 32 blocks as operated JVs), covering an area of 99.3k sq. km
as at June end 2024.
On the drilling front, company spud 13 wells, with seven
being exploratory and six developmental. This resulted in five discoveries
during the year: Chak 214-1, Dars West-2, Kharo-01, Togh-2 and Nur West-1
(tight gas well), with combined daily production of 481 bpd of oil and 28mmcfd
of gas, respectively.
With regards to 2D/3D seismic activities, company conducted
1,236/1,201 sq. kms of surveys during FY24.
Jhal Magsi development project has received approval for
marginal gas pricing by the ECC. Significant construction milestones have been
achieved, with commissioning expected during the current month.
Uch (requirement under GSA with UPL) and KPD-TAY (+100mmcfd)
compression projects are presently in the detailed engineering phase, with
completion expected by March 2026.
Opex were up 32%YoY during the year, with the primary reason
being the lease expiry of three major fields. This led to additional payments
to the GoP in form of an incremental charge of 15% of wellhead value.
Company's contract expenses were notably higher during the
period, driven by various production optimization studies conducted across
multiple fields.
Additionally, operations in sensitive areas resulted in
increased security expenses as well.
Company also recognized PKR23 billion in impairment charges
related to interest receivables from GoP’s TFCs.
Regarding the expected production profile and reserve size
of the Abu Dhabi Block, management noted that the block is still in the
appraisal stages. Regarding company's share in production, management stated
that discussions with ‘ADNOC' are ongoing.
AKD Securities maintains its 'BUY' stance on the stock with
a June 2025 target price of PKR180/ share, alongside a DY of 10% for FY25.
