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03
Directors’ Report
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 ninemonths endingMarch 31, 2017.
During the period, the Company has made a profit after tax of Rs. 7,466 million (March 31, 2016:
Rs. 5,840 million), which is higher by 27.83 % as compared to the corresponding period last year. The
increase in profit is mainly because of increase in sale price & volumes of crude oil and lower
exploration cost. The profit translates into earnings per share of Rs. 31.56 (March 31, 2016: Rs. 24.69).
Net Sales of Rs. 20,416 million are higher by Rs. 1,855 million mainly because of higher average crude
oil selling price and crude oil sales volume, which increased by 12.4 % and 13.1% respectively, as
compared to the corresponding period last year. During the period the Company made a consolidated
profit after tax of Rs. 7,580 million (March 31, 2016: Rs. 5,820 million) which translate into consolidated
earnings per share of Rs. 31.93 (March 31, 2016: Rs. 24.50).
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)
1,702,140
Gas
(Million Cubic Feet)
20,717
LPG
(Metric Tonnes)
40,226
Sulphur
(Metric Tonnes)
473
Solvent Oil
(US Barrels)
20,764
The Company’s share in production, including that from joint ventures, for the period under review
averaged 6,706 barrels per day (bpd) of crude, 76.49 million standard cubic feet per day (mmscfd) of
gas, 52 bpd of solvent oil, 158.44metric tonnes per day (MTD) of LPGand 1.55MTD of Sulphur.
At Balkassar (100% owned by POL), evaluation of 2D/3D seismic data at basement subthrust levels
has been completed. Two possible leads have been identified in subthrust. Quality 3D seismic is
required to confirm these leads. In this respect, Balkassar 3D seismic data acquisition designing report
has been prepared.
At Tal block, (operated by MOL, where POLhas a pre-commerciality share of 25%),
Mardankhel-2 well was spudded on September 09, 2016. During drilling the string got stuck in the
salt formation and as a result the well was side tracked. As at period end, drilling at 13,408 ft is in
progress. Prognosed target depth of the well is ± 15,774 ft.
Mardankhel-3 well achieved its target depth and has been completed. After completion the well
produced 377 barrels of condensate and 12.38 mmscf of gas per day at 32/64” choke size at well
head flowing pressure of 3,182 psi. Production from this well is expected to start from October-
2017.
Financial results
Production
1,843,921
21,040
43,566
426
14,250
Exploration and development activities
Producing Fields
Nine months period ended
Mar. 31, 2017
Mar. 31, 2016