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MOL discovers oil and gas at exploratory well in Pakistan

Hungarian oil and gas company MOL has discovered oil and gas at the company's Tolanj X-1 exploratory well at the TAL Block in Pakistan, MOL announced on Monday morning.

Tolanj X-1 well was spudded on June 21 2010.

The upper 48 meters of the drilled section in the Lumshiwal Formation produced around 16.3 MMcfd gas (462,000 cmpd, 2,900 boepd) during Barefoot DST at 32/64 inch fixed choke size at flowing wellhead pressure of 2392 psi (164 bar). The drilling will be continued to penetrate and test the deeper prospective horizons.

The MOL Group signed a Petroleum Concession Agreement (PCA) with the Government of Pakistan via its 100%-owned subsidiary MOL Pakistan Oil and Gas for the TAL exploration block in 1999. MOL Pakistan Oil and Gas serves as operator of the block with participating interest of 10%. Both the Oil and Gas Development Company Limited and Pakistan Petroleum Limited have a 30% share of the block, while Pakistan Oilfields Limited has a 25% share and Government Holdings (Private) Limited holds a 5% share.

MOL Group Exploration and Production Vice President Zoltan Aldott commented: "The successful well test continues the queue of the discoveries recently announced by MOL Group and justifies the Group's strategic focus to maintain the long-term Upstream growth, based on organic, exploration projects. Pakistan is one of the core areas for the implementation of this strategy, where operations in TAL Block provided not only significant exploration results, but in cooperation with the Government of Pakistan and our JV Partners intensive field development resulted continuously increasing hydrocarbon production which is expected to be further expanded due to these new discoveries."