e&p brochure-november

November 2010

1

ContentsForeword 2

Pakistan’s Energy Sector 4

Pakistan’s Hydrocarbon Prospectivity 6

Company Profile 12

PPL’s Exploration Efforts: Past and Present 16

Exploration Strategy and Future Direction 20

Exploration opportunities available with PPL 23

Contacts 54

2

Government of Pakistan (GoP) hasgranted 32 exploratory licenses out of37 blocks approved for bidding to publicand private sector companies in the bidround of September 2009 in addition tothe 119 licenses that already exist. ThePetroleum Policy 2009 will facilitate E&Pcompanies in fast tracking their activitiesand making optimum use of the availableresources to find additional hydrocarbonreserves in the country.

Being a pioneer E&P Company, PakistanPetroleum Limited (PPL) is on the forefrontto address growing energy demand of thecountry. Since its major gas discovery atSui in 1952, Pakistan’s largest gas field,PPL has continued to explore new areasleading to the discoveries in Adhi,Kandhkot, Mazarani and Adam toreplenish its diminishing reserves.Additionally, the company has recentlymade significant oil and gas discoveries inits partner operated blocks located inNorthern Pakistan in Kohat area.

PPL’s current exploration portfoliocomprises 19 operated and 16 partneroperated blocks (including 4 offshoreblocks). The blocks are located in theLower, Middle, Upper Indus Basins,Kirthar, Sulaiman Foldbelts andBalochistan Basin of Pakistan. Thecompany is also endeavoring to acquireinterest in some more blocks. Moreover,PPL also holds interest in a block inYemen. PPL’s major joint venture partnersinclude Eni Pakistan Limited, MoravskéNaftové Doly a.s. (MND), MOL Pakistan Oil& Gas Company B.V., Oil & Gas

Development Company Limited (OGDCL),OMV (Pakistan) Exploration GmbH, OMV(Yemen), Petroleum Exploration (Pvt.)Limited, Polish Oil and Gas Company,Pyramid Energy InternationalIncorporated, Kirthar B.V., ZhenHua OilCompany Limited, Mari Gas CompanyLimited and Saita.

Continuing its tradition of working withenterprising joint venture partners,PPL is seeking partnerships in its newblocks. Besides, some working interest isstill available in exploration blocks alreadyheld by PPL (Nushki, Khuzdar, OffshoreIndus C blocks in Pakistan and Block 29 inYemen). We hope this brochure will providea quick reference to the explorationopportunities available with PPL forfarm-out within and outside Pakistan.

ForewordThe increase in demand together with hike in oil and gas prices

during the recent past has built-up attention towards theexploration and production (E&P) sector worldwide. The trend has

also influenced the E&P activities in Pakistan, where the energydemand and supply gap is continuously widening.

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Tight anticline-syncline in Parkini Formation of Miocene age, Makran, Pakistan

Drilling of uphole in progress during seismic data acquisition in Nushki Block, 2009

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GoP is committed to accelerate anexploration and development programmethrough a liberal Petroleum Policy 2009 toenhance domestic crude oil and gasproduction and supply to reduce the burdenof imported fossil fuel on national economy.

The E&P sector in Pakistan experiencedexceptional growth since independence in1947. Over the last sixty years, the sectorhas played a significant role in thedevelopment of nation by making a largenumber of oil and gas discoveries.Pakistan meets about 15 percent of its oil

demand from indigenous production. Oiland gas is the major energy source ofPakistan, contributing over 78 percent ofthe energy consumption and GoP hasgiven high priority to this sector sinceindependence. The remaining 22 percentis derived from hydropower, coal, liquefiedpetroleum gas (LPG), nuclear andimported power. GoP has adoptedconsistent policies aimed at promotingforeign investment in the upstreampetroleum sector. Pakistan’s commerciallyexploitable energy resources includenatural gas, oil, coal, hydropower, solar

Pakistan’sEnergySectorPakistan is situated at a geo-strategic and geo-political location,

with the oil-rich Central Asian Republics to the north, Iran to thewest and huge markets of China and India to the north and east.

and wind. During 2008-09, the country’sprimary commercial energy supply wasabout 63 million tonnes of oil equivalent.

Over the years, Pakistan’s downstreamsector has shown remarkabledevelopment. Pakistan has one of theworld’s best gas transmission networks,which caters for the industrial as well asdomestic demand. Increased demand foroil and gas and attractive fiscal regime inthe country provide opportunities for E&Pcompanies to develop new discoveries ona fast-track-basis. Moreover, this isproviding impetus to E&P companies toventure in areas, where little or noexploration activity had been conducted.

The country needs to revamp itsindigenous resources and find ways toimport energy in the form of LNG andpiped natural gas.

Due to its strategic geographical location,Pakistan can acquire economic benefit byproviding transit route for fulfilling theregions’ energy requirements as well asits own needs. In addition, generation ofenergy through alternate sources is alsobeing considered by GoP.

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50

45

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35

30

25

20

15

10

5

0

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

1990-91 1997-98 2002-03 2007-08 2008-09

2004 2005 2010 2015 2020 2025

Oil Gas Coal Electricity LPGM

Msc

fd

Demand

Supply

Energy consumption in percentage by source

Year-wise gas supply and demand

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Exploration HistoryOil and Gas sector in Pakistan has seenphenomenal growth since 1947. Duringthe last 60 years, petroleum industryplayed a significant role in nationaldevelopment by making large indigenousgas discoveries. Brief description ofthese exploration efforts are presentedbelow:

ONSHORE: The first exploration well inthe undivided British India which is nowPakistan, was drilled in 1868 near an oilseep at Kundal in District Mianwali,Punjab by Punjab Oriental State (POS).Later on, wells sunk to about 150 m nearKathan oil seeps produced 800,000gallons of oil between 1886 and 1892.But the first commercial oil discovery wasmade in 1915 at Khaur (4.31 MMbo),District Attock, Punjab, by Attock OilCompany (AOC). In 1937 AOC made asignificant oil discovery in Dulian (81MMboe). In 1952, PPL made the largestknown gas discovery at Sui. The originalrecoverable gas reserves at Sui wereabout 13 Tcf. The discovery of Sui GasField was the first major milestone in thesearch for hydrocarbons in Pakistan.

Later, other significant discoveries ofnatural gas were made at Uch (909MMboe) by PPL in 1955, Mari(1.3 Bboe) by ESSO in 1957 andKandhkot (299 MMboe) by PPL in 1959.Meyal (95 MMboe) Oil field was discoveredin 1968 in Potwar (Punjab) by POL.

Following a marginal gas discovery atRodho (261 Bcf) in Cretaceous/Paleocene clastics and carbonates,OGDCL made a significant size gas/condensate discovery in 1976 at Dhodak(95 MMboe) in Punjab. Two years later,

PPL discovered Adhi Oil and Gas Field(146 MMboe) in Potwar. This was thefirst commercial gas/ condensatediscovery in the rocks of Paleozoic age ineast Potwar area.

In 1981, British Petroleum (BP) formerlyknown as Union Texas Pakistan (UTP)discovered oil at Khaskeli (14 MMbo) inthe Lower Indus Basin (Sindh) in earlyCretaceous Lower Goru sands. After Sui,the discovery of oil in the Lower IndusBasin was the second milestone in thesearch for hydrocarbons in Pakistan. Thisled to a boom in exploration activity inthe Lower Indus Basin, resulting inseveral oil discoveries.

In 1984, Oxy (Currently OPII) discoveredan oil and gas field Dhurnal (73 MMboe)in Permian and Eocene carbonates innorthern Potwar Basin.

The first natural gas discovery in thePunjab Platform was made by OGDCL atNandpur (107 Bcf) in 1984 followed byPanjpir (96 Bcf) in 1985 from Jurassiccarbonates and Cretaceous sandstones.

OGDCL made a sizeable gas discovery inthe Middle Indus Basin at Qadirpur (4.5Tcf) in 1989. During the same year, Enimade a gas discovery at Kadanwari (490Bcf), south of Khairpur-Jacobabad High.Following these, a number of significantgas discoveries have been made in theMiddle Indus Basin, including Miano (828Bcf) in 1993 and Sawan (2.3 Tcf) in 1998by OMV of Austria, Mari Deep (1.2 Tcf) in1997 by MGCL and Rehmat (114 Bcf) in2001 by Petronas of Malaysia, all in earlyCretaceous Lower Goru sandstones.

In 1994, OGDCL made oil discovery atRajian (8.43 MMbo) from sub-thrust play

Pakistan’s –HydrocarbonProspectivity

7

of Potwar Basin and opened a newhorizon for exploration in this basin. Enimade first commercial gas discovery inKirthar foldbelt and foredeep basin atBhit (1.6 Tcf) in 1998 followed byZamzama (2.3 Tcf) in 1998 by BHP, anAustralian Company, both in UpperCretaceous Pab Sandstone.

In 1999, OGDCL made a landmark oildiscovery at Chanda (94 MMboe),located in Kohat Basin. This was the firstever hydrocarbon discovery in KohatBasin which was followed by anotherdiscovery at Manzalai (257 MMboe) in2002 by MOL of Hungary. Thesediscoveries opened up a new focus areafor exploration. MOL and OGDCL havemade gas/condensate discoveries atMakori (49 MMboe) in 2005, Mamikhel(54 MMboe) in 2008, Maramzai (59MMboe) in 2009 and Mela (30 MMboe)in 2006 & Nashpa (23 MMboe) in 2009respectively.

In 2005, Dewan Petroleum deepenedone of the old Rodho wells (Dewan-5)and found commercial accumulation ofgood quality gas for the first time inJurassic Chiltan Limestone. In 2009,POGC drilled Rehman-01 well in Kirtharfoldbelt resulting first tight sanddiscovery from Upper Cretaceous Pabsandstone.

OFFSHORE: The area consists of twobasins — Indus and Makran.The Indus basin constitutes the secondlargest delta/fan system in the worldafter the Bay of Bengal. This is analogousto many producing basins of the world interms of geological setting such asMississippi Delta (Gulf of Mexico, USA),Niger Delta (Nigeria), Mahakam Delta(Indonesia), Mackenzie Delta (Canada)and Gipsland Basin (Australia).

Exploration in the Indus Offshore datesback to 1961 when Sun Oil Company

28°

DHULIAN

G i l g i tB a l t i s t a n

PESHAWAR

AF

GH

AN

IS

TA

N

IN

DI

A

QUETTA

IR

AN

LAHORE

MIANO

J A M M U

K A S H M I RA N D

( D i s p u t e d A r e a )

BHIT

74°72°70°

24°

25°

26°

27°

30°

29°

31°

33°

32°

35°

36°

34°

ZARGHUN SOUTH

Gas

Oil

Gas/Condensate

KHASKHELI

23°

0 200

KILOMETERS

100

NN

KHATTAN

KUNDALCHANDA

ADHIKHAUR

DHURNAL

RAJIAN

MANZALAI

DHODAK

SAWAN

ZAMZAMA

KARACHI

62° 64° 66° 68°

A R A B I A N

S E A

SUI

P u n j a b

B a l o c h i s t a n

S i n d h

ISLAMABAD

DEWAN-5A

REHMAN-1

Khyber

Pakhtunkhwa

MILESTONES OF OIL & GAS DISCOVERIESMilestones1866 Kundal* (GOP)1915 Khaur (AOC)1937 Dhulian (AOC)

PPAAKKIISSTTAANN,, 119944771952 Sui (PPL)1961 Dhulian** (POL)1977 Dhodak (OGDC)1978 Adhi (PPL)1981 Khaskheli (UTP)1984 Dhurnal (Oxy)1993 Miano (OMV)1994 Rajian (OGDCL) 1997 Bhit (LASMO)1998 Zarghun South (MGCL)1998 Sawan (OMV)1998 Zamzama (BHP) 1999 Chanda (OGDCL)2002 Manzalai (MOL)2008 Dewan-5A (Dewan)2009 Rehman-01 (POGC)*First Well drilled for Oil Exploration**Gas condensate discovery fromdeeper Jurassic reservoir

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(USA) carried out seismic surveys andbased on this, drilled three near-shorewells, Dabbo Creek-1 (1963), PatianiCreek-1 (1964) and Korangi Creek-1(1964). Subsequently, Wintershall(Germany) drilled three wells, IndusMarine A-1 (1972), Indus Marine B-1(1972) and Indus Marine C-I (1975).Husky (USA) also drilled one well, KarachiSouth A-l (1978). But all of these wentdry, although gas shows were reported inmost wells. Some of these wells evenfailed to reach target objectives afterhaving encountered high pressures inMiocene Section. For the first time, non-commercial gas quantities flowed fromMiocene sands in OGDCL’s PakCan-1 welldrilled in 1986.

Occidental (USA), drilled a well Sadaf-1(1989) after conducting modern seismicsurvey but it also turned out to be a dryhole. TOTAL drilled Pak G-2 up to a depthof 4,750 meters in the water depth of2,713m during 2004, targeting anEocene carbonate buildup. Although thiswell was a commercial failure, it provedthe presence of good quality Eocenecarbonate reservoir. Subsequently Shelldrilled Anne -X1 well in deep water(1300m) at a depth of 3,250m during2007 to test a deep water multi-stackedsubmarine channel sand system. Lateron, Eni drilled Shark-01 well upto depthof 3500m in early 2010. Both these wellsalso went dry.

This indicates a staggered history ofexploration in the offshore Indus with afew wells drilled during the last 60 years.Only a couple of these can be regardedas valid tests. The basin holdsconsiderable potential for hydrocarbondiscoveries and at present there are 17offshore licences being operated byvarious E&P companies, including BP,Eni, PEL, OGDCL and Niko Resources formaking a first breakthrough in theOffshore Indus.

In Makran offshore, Jal Pari 1-A well wasdrilled by Marathon (USA) during 1976 to1977, after conducting extensive seismicsurveys. The well was abandoned due touncontrolled over pressures. Later,Ocean Energy (USA) drilled two wells,

Gwadar-1 and Pasni-1 during 2000-01,which also went dry. PPL drilled anotherexploration well on Pasni structure, PasniX-2 in 2005 but it also went dry. None ofthe wells drilled in the Makran offshoreencountered the targeted OligocenePanjgur Sandstone.

Although exploration efforts have notbeen successful in the basin butthorough evaluation is required toestablish the prospectivity of the basin.

Sedimentary Basinsand HydrocarbonProspectivity Pakistan is divided into 6 onshore and 2offshore sedimentary basins. Onshorebasins include Kohat-Potwar, MiddleIndus, Lower Indus, Kirthar Foldbelt,Sulaiman Foldbelt and Balochistan.Offshore basins include Indus andMakran.

KOHAT-POTWAR (UPPER INDUS BASIN)The basin is located in Northern Pakistannorth of Sargodha High. The basin hasrocks ranging in age from Pre-Cambrianto recent. Total sedimentary thickness ofthe basin is up to 12,000 meters, holdingpotential for both oil and gas. The basinis further divided into Potwar to the eastand Kohat to the west of River Indus.Potwar is one of the oldest regionsknown for oil and gas accumulations.Kohat emerged as an oil and gas proneregion after the discovery of Chanda in1999 followed by Manzalai in 2002. Atotal of 163 exploration wells (including 5currently active wells) have been drilledsince 1900 up to July, 2010 in Kohat-Potwar basin, resulting in 36 discoveries.

Discovered oil and gas reserves of thebasin as of January, 2010 areapproximately 545 MMbo (Pindori,Dhurnal, Dhulian, Makori, Nashpa, Melaetc.) and 5 Tcf gas (Manzalai, Makori,Adhi, Maramzai etc.) respectively.

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PPL’s basin studies suggest that UpperIndus Basin has prognosticated remainingpotential of 2 Bbo and 5 Tcf gas.

MIDDLE INDUSThe Middle Indus Basin is separatedfrom Upper Indus Basin by SargodhaHigh to the north, Mari-Kandhkot High tothe south and Sulaiman Foredeep to thewest. The basin has rocks ranging fromPre-Cambrian to recent age. Totalsedimentary thickness of the basinranges from few hundred meters in theeast to about 8,000 meters in the west. A total of 57 (including 4 currently activewells) exploration wells have been drilled,resulting in 16 discoveries since 1900 upto July, 2010. So far, 8 Tcf gas has beendiscovered in this basin (Mari & MariDeep). Punjab Platform, which formsmajor part of the basin is considered tohave potential for both oil and gas. Out of

PANJGURWRENCH ZONE/

ACCRETIONARY PRISM

HAMUN-I-MASHKHELDEPRESSION

CHAGAI MAGMATIC BELT

(Remnant Arc)

KarachiTrough

PUNJABPLATFORM

Jacobabad High

Kir

thar

For

edee

p

S a r g o d h a H i g h

PUNJABPLATFORM

Kohat-PotwarBasin

NorthernMounta ins

MBT

P i sh in Bas in

A FG H

A NI STAN

IRAN Ki r

t ha

r F

old

Be

l t

RAS KOH MB

Salt Range

ARABIANSEA

ARABIANSEAFracture Zone

Murray

Ridge

NagarParkerHorst

Balochistan

Kirth

ar

Sulaiman

Axia

l Bel

t

Axial

Bel

t

70°E65°E

KARACHI

Indus offshore

Makran offshore

Kohat-Potwar

LAHORE

ISLAMABAD

Igneous & Metamorphic Zone

PESHAWER

Middle

Indus

Lower

Indus

I NDI A

25°N

30°N

75°E

35°N

DISPUTED TERRITORY

Pakistan - Hydrocarbon Basins

Ophiolite & Hydrothermal Minerallization Zone

QUETTA

0 100 200 KM

Sargodha High

EXploration 110709 Zaheer

MapArea

GENERALIZED BASIN-WISE PETROLEUM SYSTEM (Stratigraphic Column)

PAKISTAN’S HYDROCARBON BASINS

10

26 exploration wells, only 3 wells havebeen successful in leading gas fields ofNandpur, Panjpir and Bahu.

Basin studies suggest that Middle IndusBasin has prognosticated remainingpotential of 90 MMbo and 2 Tcf gas.

LOWER INDUSBeing the sourthern part of the IndusBasin, the Lower Indus Basin is locatedto the east of Kirthar Foldbelt. The basinhas rocks from Pre-Cambrian to recentage. Total sedimentary thickness of thebasin ranges from a few hundred metersin the east near Nagar Parkar High toabout 8,000 meters in the west. This isone of the most oil prone basins of thecountry. A total of 380 exploration wells(including 1 currently active well) havebeen drilled since 1900 up to July, 2010in Lower Indus basin, resulting in 159discoveries. The basin’s discovered oiland gas reserves are 395 MMbo and 9Tcf gas. Major fields include Badin oilfields and Sawan and Miano gas fields.

Basin studies suggest that Lower IndusBasin has prognosticated remainingpotential of 200 MMbo and 3 Tcf gas.

KIRTHAR FOLDBELTKirthar Foldbelt is the north-southtrending tectonic feature that came intoexistence after the collision betweenIndian and Eurasian Plates. The foldincludes Kirthar Foldbelt, KirtharForedeep and southern Axial Belt. Thefoldbelt has exposed rocks from Triassicto recent age. Total sedimentarythickness of the basin is up to 12,000meters. A total of 75 exploratory wellshave been drilled in this foldbeltresulting in 12 discoveries (July, 2010).Discovered oil and gas reserves of thefoldbelt are 12 MMBbl and 5 Tcfrespectively. Zamzama and Bhit aremajor fields of Kirthar Foldbelt.

PPL’s basin studies suggest that KirtharFoldbelt has prognosticated remainingpotential of 290 MMBbl and 3 Tcf for oiland gas respectively.

SULAIMAN FOLDBELTSulaiman Foldbelt is one of the mostprospective regions of Pakistan, whichincludes Sulaiman Foldbelt, SulaimanForedeep and northern part of Axial Belt.The foldbelt has exposed rocks fromTriassic to recent age. Total sedimentarythickness of the basin is up to 12,000meters. A total of 57 exploration wellshave been drilled since 1900 up to July,2010 in Sulaiman Foldbelt, resulting in23 discoveries. Total discoveredreserves of the basin are 35 MMbo and27 Tcf gas. Some of the large fields ofPakistan are located in SulaimanFoldbelt, including Sui, Uch, Qadirpurand Dhodak.

Basin studies suggest that SulaimanFoldbelt has prognosticated remainingpotential of 140 MMbo and 24 Tcf gas.

BALOCHISTANBalochistan Basin is the least exploredbasin of Pakistan. Only 6 explorationwells have been drilled (July, 2010)without success. One of the mostinteresting parts of the basin is KharanFore-arc. Total sedimentary thickness ofthe basin ranges from 5,000 to 10,000meters. This fore-arc is analogous toprolific fore-arc basins of the world,including Cook Inlet Basin, Alaska (whichhas already produced more than 1billion barrels of oil and 9 Tcf of gas) andSalin Sub-basin of Myanmar(approximately 850 MMbo recoverablereserves). No well has so far been drilledin Kharan Fore-arc Basin.

According to PPL’s basin studies,Balochistan Basin’s prognosticatedpotential is 2 BBbl oil and 6 Tcf gas.

INDUS OFFSHOREIndus Offshore is analogous to world’smost prolific Niger (Total Reserves: 45BBoe), Mahakam (Total Reserves: 11BBoe) and Nile (Total Reserves: 5 BBoe)deltas. The basin has a non-commercialgas discovery of PakCan-1, suggestive ofworking petroleum system in the basin.

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The oldest rocks encountered in the wellare from Eocene age, however, the basinmay have rocks up to Pre-Cambrian age.Total sedimentary thickness is up to12,000 meters in the middle part of thebasin. A total of 13 wells (including 1currently active) have been drilled in thebasin (July, 2010), only a couple of whichmay be regarded as valid tests. The basinholds considerable potential forhydrocarbon discoveries.

Basin studies conducted by PPL suggestthat Indus Offshore has prognosticatedpotential of 800 MMbo and 5 Tcf of gas.

MAKRAN OFFSHOREThis basin is located along the Makrancoast to the west of Murray Ridge.Makran was formed as a result ofcollision and subsequent subduction ofArabian plate beneath the Eurasian plate.

The basin has rocks from Paleocene torecent age. Total sedimentary thicknessof the basin is up to 12,000 meters. Sofar, 4 wells have been drilled in the basinwithout success (July, 2010). This ispartially due to high pressuresencountered before reaching targetreservoir of Oligocene Panjgur Sandstone.Thorough evaluation is required toestablish prospectivity of this basin.

Paleocene Outcrops at Ranikot Fort, Dadu, Pakistan

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The Company has managed to sustain itsposition due to its robust businessprogramme and persistent efforts tooptimize production from existing fieldsand new discoveries, currently contributingabout 25 percent of the country’s totalnatural gas supplies in addition to crudeoil, Natural Gas Liquid (NGL) and LiquefiedPetroleum Gas (LPG).

From the landmark discovery of Sui in 1952,to offshore drilling ventures followed byinternational exploration, the Company hasalways been on the frontline of the domesticE&P sector. The Company’s history can betraced back to the establishment of a publiclimited Company in June 1950, the majorityshares of which were held by Burmah OilCompany (BOC) of the United Kingdom.

In September 1997, BOC sold its equity inPPL to the Government of Pakistan. In July

2004, the GOP, in turn, sold 15 percent of itsholding in PPL to the general public throughan Initial Public Offer, reducing its share to69 percent. The remaining equity is dividedbetween private investors and the PPLEmployees Empowerment Trust, holding21.6 percent and 9.4 percent, respectively.

Currently, the Company operates fiveproducing fields across the country at Sui(Pakistan’s largest gas field), Adhi,Kandhkot, Chachar and Mazarani and holdsworking interest in seven partner-operatedproducing fields. These are Qadirpur, Miano,Sawan, Hasan, Sadiq & Khanpur (Block 22)and Manzalai. Additionally discoveries fromMakori (Tal Block), Mela & Nashpa (NashpaBlock), Latif (Latif Block) and Tajjal (GambatBlock) are under appraisal phase throughearly production. Besides, PPL has anoperated discovery of Adam (Hala Block)and partner-operated discoveries of

CompanyProfile The pioneer of the natural gas industry in the country,

Pakistan Petroleum Limited (PPL) has been a key playerin the energy sector since the 1950s.

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)

SUI

ADHIPPL

(TAL)3370-3

MOL

KANDHKOTPPL

Lahore

Karachi

Peshawar

Islamabad

Gilgit

Skardu

Muzafferabad

ADHINASHPA(OGDCL)

MANZALAI(MOL)

BASKA(ZhenHua)

SADIQ (PEL)

MAZARANIKHUZDAR

GUNGA(BARYTES)

KIRTHAR(POGC)

KALAT

BLOCK 22(Hamza) (PEL)

KHANPUR (PEL)HASAN

(PEL)

HALA

KANDHKOTCHACHAR

MIANO (OMV)GAMBAT (OMV)S.W. MIANO-II (OMV)

SAWAN (OMV)LATIF (OMV)

QADIRPUR(OGDCL)

NUSHKI DILBAND(Iron Ore)

NOKKUNDI(Iron Ore)

SUI

BARKHAN

(BAHAWALPUR EAST)

TAL(MOL)

OFFSHORE INDUS- M(Eni)

OFFSHORE INDUS-N (Eni

OFFSHORE INDUS-G (OGDCL)

)

OFFSHORE INDUS-C (Eni)

A R A B I A N S E A

Quetta

B A L O C H I S T A N

P U N J A B

JAMMU & KASHMIR(Disputed Territory)

S I N D H

DHOK SULTAN

ZINDAN

DERA ISMIL KHAN

JUNGHSHAHI

SUKHPUR

SIRANI

NAUSHARO FIROZ

GAMBAT SOUTH

KOTRI NORTHKOTRI

ZAMZAMASOUTH

KHARAN

KHARAN WEST KHARAN EAST

KHYBERPAKHTUNKHWA

JHERRUCK

GHAURI(MGCL)

(BP Alpha)DIGRI

(NHEPL)

0 150 30075

Kilometers

Saudi Arabia Oman

Djibouti

Ethiopia

Eritrea

52°0'0"E50°0'0"E48°0'0"E46°0'0"E44°0'0"E42°0'0"E

18°0

'0"N

16°0

'0"N

14°0

'0"N

12°0

'0"N

Gulf of Eden

Red Sea

Yemen

Block 29(OMV / PPL / YGCOG)

HADRAMAWTAL MAHRAHAL JAWF

SHABWAH

MA'RIB

ABYAN

LAHIJ

SAN'A'

SA'DAH

TA'IZZ

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HAJJAH 'AMRAN

DHAMAR

AL BAYDA'

AL HUDAYDAH

AD DALI'

AL MAHWIT

(Yemen)Socotra

Abd al Kun(Yemen)

Al Ghaydh

Al MukallaAtaq

A Bayda

Marib

Al Hazm

Sa dah

AmranHajjahAl Mahwit Sanaa

Dhamar

Ibb

Taizz

Lahij Zinjiber

Aden

Ad Dali

Somalia

PPL Held InterestOctober 2010

PPL-operated

Partner-operated

EXPLORATION LICENCE

PPL-operated

Partner-operated

MINING / D&P LEASE

Under Execution

Farm-in Under Process

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Mamikhel, Maramzai (Tal Block) andRehman (Kirthar Block).

PPL’s average daily production during 2009-10 from its operated and partner-operatedfields was 977 MMscfd gas, 5,003 barrelsoil/NGL and 63 tonnes LPG.

As a major stakeholder in securing a safeenergy future for the country, PPL pursuesa dynamic exploration agenda aimed atenhancing hydrocarbon reserves. InPakistan, the Company’s explorationportfolio comprises 35* exploration blocks.Of these, PPL operates 19 through joint

ventures with other E&P companies andhas working interest in 16 moreexploration areas, including four off-shoreblocks, as non-operating partner. PPL isalso the first local public sector E&Pcompany to extend its operations beyondnational borders and has an interest in anexploration licence in Yemen in a jointventure with OMV/YGCOG.

So far, 326 wells, including 95 exploratoryand 231 appraisal / development wellshave been drilled, resulting in the discoveryof about 30 Tcf gas, 240 million barrels ofoil / condensate in PPL-operated andpartner-operated leases.

PPL is determined to maintain andcontinually improve its position as keyprovider of energy through sustainableexploitation of native sources by practicingextra ordinary Health, Safety andEnvironment Standards at all levels.

In terms of International HSE Certifications,almost all PPL Fields / Depts. havesuccessfully achieved ISO 14001 (EMS)and OHSAS 18001 (OH & S) certifications.Regular Internal and external audits areconducted to ensure continualimprovement in the management system.Besides, PPL also upholds compliance toall applicable HSE local statutoryrequirements. Initial EnvironmentalExamination and Environmental ImpactAssessment studies are undertaken for allDevelopment Projects, Exploration, Drillingand Field Development activities inpursuance of Pakistan EnvironmentalProtection Act, 1997.

HSE orientations, trainings andmanagement workshops are customaryfeatures offered throughout the year at PPLfor all employees particularly in view oftheir needs and to strengthen humanresources for exercising HSE policies &procedures, augmenting operationalperformance and growth of HSE culture.PPL’s pursuit of HSE excellence isacknowledged through awards at variousforums. In this connection PPL was awardedfor Environmental Excellence in 2006, 2008& 2009 by the National Forum for

Natural Gas Production (million cubic feet) PPL’s share

380,000

370,000

360,000

350,000

340,000

330,000

320,000

332,113

343,841

349,580

371,714

365,525 366,413

356,194 356,682

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Crude Oil/NGL/Condensate Production (thousand barrels) PPL’s share2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

419618 602 653

1,031

1,480 1,506

1,826

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

LPG Production(tonnes) PPL’s share24,00022,00020,00018,00016,00014,00012,00010,0008,0006,0004,0002,000

0

9,098 8,798 9,088 9,478

14,220

17,964

19,958

23,047

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

*Please see PPL’s Held Interest Map and Exploration Assets at page 13 and 18 respectively

15

Environment and Health. Similarly, PPLreceived Occupational Health, Safety andEnvironment award in 2007 & 2010 byEmployers’ Federation of Pakistan.

To uplift the underprivileged societies, PPLis contributing since long and iscommitted to continue the same in timesto come. As a responsible organization,The Company’s support plays a vital rolefor betterment of society in general andupliftment of the communities around itsoperation fields, in particular.

The company’s social welfare initiatives aredirected towards promotion of education,health care, infrastructure development,mitigation of natural disasters, waterresources development and cash donationsfor humanitarian activities. The list is notlimited rather expanding as the Companytakes on initiatives where it considers that itscontribution is going to make a meaningfuldifference. PPL believes that strong bond ofpartnership with communities is imperativefor long-term relationship and businessgrowth. The overall objective of the PPL’sinitiatives is the sustainable development ofcommunities hence, these initiatives areneed based and participatory. To manage the CSR activities PPL

established a PPL Welfare Trust in the year2001 which approves, supervise andmonitor the CSR activities. Besides, PPLestablished Community DevelopmentDepartment comprised over dedicated andexpert professional in the field of socialdevelopment to carry our out CSR activities.

PPL allocates minimum 1.5% of profit toexecute CSR activities which is in millionrupees. During last year PPL spent Rs. 525million on following projects:

Scholarships to higher professionaleducation, scholarships to pursue diplomalevel education, establish computer trainingcentre, supported Rural Health Centers,Basic Health Units, organized free medical&surgical camps, organized free surgical eyecamps, construction of schools, constructionof women vocational training centers,established dialysis units, supportednational level health care institutions andhospitals, donated furniture an computersto various institutions, constructed andrenovated school building and providedfurniture, operated free Mobile Medical Unit,constructed Police Emergency and QuickResponse Centre, supported orphan housesand special children’s institutes, operatedwater supply scheme.

Base Camp for Seismic Survey in Nushki Block, 2009

16

This was followed by gas discoveries atZin, Uch, Kandhkot, Khairpur andMazarani and an oil discovery at Karsal.During 1950 to 1960, PPL drilled 19exploration wells, made six discoveriesand added 16.5 Tcf gas and 0.2 MMbo. To this end, PPL’s exploration activitiescame to a low key due to the lack of biggas market at that time.

PPL re-started its exploration campaign,after a pause of over a decade on alimited basis in mid seventies in five areasin joint venture with AMOCO, which

resulted in the discovery of Adhi Gas / OilField in East Potwar Exploration Licence.

PPL formed a Consortium of Companies in1988, including Premier Consolidated OilFields Plc (Premier) and Burmah forexploration (as non-operator) in five areas.The Qadirpur gas discovery (4.5 Tcf) wasmade as a result of this explorationcampaign. Subsequently, during 1989when the first ever bidding round in thecountry was announced by theGovernment, PPL acquired working interestin seven new exploration joint ventures (as

PPL’s Exploration Efforts:Past and Present

PPL’s long history of exploration has witnessed several episodesof activities with varying vigor.The major breakthrough came in

the form of the discovery of Sui Gas Field in 1952.

A rig in Mazarani Gas Field, 1958

17

operator in three areas). This campaignresulted in gas discoveries at Miano andSawan and gas/condensate at Savi Ragha.

After transferring of BOC assets in PPL toGovernment of Pakistan in 1997 andremoval of financial constraints,exploration efforts were accelerated by theCompany. During the last 10 years (2000to June 2010), PPL acquired workinginterest in 47 exploration blocks adding to8 already held by the Company inPakistan. PPL also acquired workinginterest in one block located in Yemen as ajoint venture partner with OMV andYGCOG. Moreover, during this time, PPLalso drilled 37 exploration wells in itsoperated and partner-operated areas. PPLhas made discoveries in its operated andpartner operated areas with 2Precoverable reserves size of 16 Tcf gasand 47 MMbo (PPL’s share) since start ofexploration in early 1950s to June, 2010.Only during the last five years, tendiscoveries have been made with one inPPL’s operated area.

PPL’s Existing E&P AssetsPPL continues to strive to maximize itshydrocarbon reserves through explorationand production optimization in order tomaintain its position as the premierexploration and production company inthe country.

The Company is aggressively pursuingexploration opportunities and has beensuccessful in substantially expanding itsexploration portfolio during the last few years.Currently, the Company holds working interestin 36* exploration blocks, 19 PPL-operatedand 17 partner-operated blocks, includingone block in Yemen. Additionally farm-inefforts are underway to acquire workinginterest in few more blocks. These efforts willlead to substantial portfolio expansion.

The Company intends to contributeeffectively towards the Nation’s economicdevelopment by optimizing production

Multiphase folding in Anjira Formation of Jurassic Age, Kalat, Pakistan

*Please see PPL’s Held Interest Map and Exploration Assets at page 13 and 18 respectively

18

from its operated and partner-operatedproducing fields. Additionally, recentdiscoveries from Makori, Mela, Latif,Adam, Nashpa and Tajjal are underappraisal phase through early

production and fast track developmentwhile plans for early production fromMamikhel, Maramzai and Rehman areunderway. Summary of PPL’s E&Pportfolio is provided below:

Block Operator PPL WI Area Basin Trap type Expected (percent) (sq. km) HC type

PPL’s operated ONSHORE1 Barkhan PPL 35 2,104.69 Sulaiman Foldebelt Structural Gas2 Khuzdar PPL 65 2,498.87 Kirthar Foldbelt Structural Gas3 Kalat PPL 35 2,482.14 Kirthar Foldbelt Structural Gas4 Nushki PPL 65 1,780.76 Balochistan Basin Structural Gas5 Hala PPL 65 394.57 Lower Indus Basin Structural Gas/Cond6 Bahawalpur East PPL 49 2,495.45 Middle Indus Basin Stratigraphic - Structural Oil

NEW BLOCKS7 Sirani* PPL 75 2460.89 Lower Indus Basin Tilted Fault Block Oil & Gas8 Naushahro Firoz* PPL 90 2494.25 Lower Indus Basin Structural & Stratigraphic Gas9 Zamzama South PPL 100 843.99 Lower Indus Basin Structural Gas10 Jungshahi PPL 100 2459.26 Lower Indus Basin Structural Gas11 Gambat South* PPL 35 2435.95 Lower Indus Basin Tilted Fault Block Gas12 Kotri PPL 100 2377.64 Lower Indus Basin Tilted Fault Block Gas13 Kotri North* PPL 90 2471.69 Lower Indus Basin Structural/ Stratigraphic Gas14 Dhok Sultan* PPL 75 703.23 Upper Indus Basin Structural/ Stratigraphic Oil/Gas15 Zindan* PPL 35 2495.93 Upper Indus Basin Structural/ Stratigraphic Oil16 Dera Ismail Khan PPL 100 1419.03 Middle Indus Basin Stratigraphic Oil17 Kharan PPL 100 2481.14 Balochistan Basin Frontier Oil18 Kharan East PPL 100 2489.67 Balochistan Basin Frontier Oil19 Kharan West PPL 100 2487.37 Balochistan Basin Frontier Oil

PPL’s partner-operatedONSHORE20 Baska ZhenHua 49 2,442 Sulaiman Foldebelt Structural Gas/Cond21 Nashpa OGDCL 30 779 Kohat-Potwar Structural Oil/Gas22 Gambat OMV 30 5,214 Lower Indus Stratigraphic / Structural Gas23 SW Miano II OMV 33.30 619 Lower Indus Stratigraphic Gas24 Kirthar POGC 30 956 Kirthar Foldbelt Structural Gas25 Latif OMV 33.33 1,219 Lower Indus Stratigraphic Gas26 Tal MOL 30 3,306 Kohat-Potwar Structural Oil/Gas27 Block - 22 (Hamza) PEL 45 173 Lower Indus Structural Gas28 Block 29 (Yemen)** OMV 43.75 9,237 Hadramawt Arch Structural OilNEW BLOCK29 Sukhpur Eni 30 2478.75 Kirthar Fold Belt Structural Gas30 Jherruck NHEPL 30 733.79 Lower Indus Structural Oil31 Ghauri* MGCL 35 1291.52 Kohat-Potwar Structural Oil/Gas32 Digri* BP 15 2496.89 Lower Indus Structural OilOFFSHORE33 Indus Offshore M Eni 30 2,495 Indus Offshore Structural-Stratigraphic Gas34 Indus Offshore N Eni 30 2,498 Indus Offshore Structural-Stratigraphic Gas35 Indus Offshore C Eni 40 2,494 Indus Offshore Stratigraphic-Structural Gas36 Indus Offshore G* OGDCL 25 7,466 Indus Offshore Stratigraphic-Structural Gas

*Negotiation / Execution in process

**OMV (WI 43.75%), PPL (WI 43.75%) and YGCOG (WI 12.5%)

PPL’s Exploration Assets

19

Field Operator PPL WI Area Basin Trap type HC type(percent) (sq. km)

Oil Gas (MMBbl) (Tcf)

PPL’s operated 1 Sui ML PPL 100 572 Sulaiman Structural Gas - 12.625

Foldebelt2 Kandhkot ML PPL 100 285 Sulaiman Structural Gas - 1.68

Foldebelt3 Adhi D&PL PPL 39 200 Kohat-Potwar Structural Oil/Gas/LPG 55.1 0.5094 Mazarani D&PL PPL 87.50 43 Kirthar Foldbelt Structural Gas - 0.1835 Chachar D&PL PPL 75.00 34 Sulaiman Structural Gas - 0.037

Foldebelt6 Hala PPL 65 395 Lower Indus Structural Gas/Oil/LPG 1.2 0.023

PPL’s partner-operated7 Sawan D&PL OMV 26.18 236 Lower Indus Structural- Gas - 2.287

Stratigraphic8 Miano D&PL OMV 15.16 814 Lower Indus Structural- Gas 0.431 0.828

Stratigraphic9 Qadirpur D&PL OGDCL 7 389 Sulaiman Structural Gas - 4.52

Foldebelt10 Manzalai D&PL MOL 27.76 383 Kohat-Potwar Structural Gas 21 1.325

Condensate11 Block 22 fields PEL 35.53 38 Lower Indus Structural Gas - 0.094

(Hasan, Sadiq& Khanpur D&PLs)

12 Makori Discovery MOL 27.76 - Kohat-Potwar Structural Gas/Oil 11.99 0.210(Tal Block)

13 Mela Discovery MOL 26.05 - Kohat-Potwar Structural Oil/Gas 19.29 0.057(Nashpa Block)

14 Latif & Latif North OMV 33.3 - Lower Indus Structural- Gas - 0.159Discoveries Stratigraphic(Latif Block)

15 Tajjal Discovery OMV 26.18 - Lower Indus Stratigraphic Gas - 0.068(Gambat Block)

16 Mamikhel Discovery* MOL 27.76 - Kohat-Potwar Structural Gas/Oil 21 0.187(Tal Block)

17 Nashpa Discovery(Nashpa Block) OGDCL 26.05 - Kohat-Potwar Structural Oil 14.1 0.05

18 Maramzai Discovery*(Tal Block) MOL 27.76 - Kohat-Potwar Structural Gas 9.3 0.28

19 Rehman Discovery*(Kirthar Block) POGC 30.00 - Kirthar Foldbelt Structural Gas - 0.325

* Production has not started yet

PPL’s Producing Assets

Most Likely EstimatedUltimate Recovery

20

Taking advantage of the liberalgovernment policies, PPL has achievedoutstanding success in expanding itsexploration portfolio by embarking uponmany new ventures to augment itsreserves base. While pursuing anaggressive exploration programme, PPLmaintains highest standards of health,safety and environmental conservation.

Having a large E&P databaseaccumulated over the five decades, PPL iswell-placed to continue its explorationactivities by pursuing the followingactions:

Local Exploration� Explore deeper prospectivity in PPL-

operated producing assets � Keep a manageable portfolio of

operated and partner-operated areas� Endeavor to acquire undeveloped and

partly-developed reserves � Focus on basin analysis and thorough

prospectivity evaluation

International ExplorationBeing the premier E&P Company inPakistan, PPL is endeavoring to expand itsoperations beyond the national borders.PPL has already acquired working interestin Block 29 (Yemen) with OMV and YGCOGas Partners

A number of opportunities have beenevaluated in various countries of Africa,the Middle East and Central AsianRepublics and Indonesia and variousoptions are being considered to expandon international front. Evaluation of theseopportunities have provided PPL database and working experience conducivefor taking prompt decisions.

The company continues to have interestin North and West Africa, the Middle Eastand Central Asian Republics and it isinterested in joint ventures with othercompanies operating in these regions.

Exploration StrategyandFuture Direction

The company’s exploration strategy is aimed at replenishing and enhancing its existing reserves. To this end, regional

studies and evaluation continue to identify prospective areasfor direct participation in bidding and pursuing farm-in

opportunities with other companies.

22

)

SUI

ADHIPPL

(TAL)3370-3

MOL

KANDHKOTPPL

Lahore

Karachi

Peshawar

Islamabad

Gilgit

Skardu

Muzafferabad

ADHINASHPA(OGDCL)

MANZALAI(MOL)

BASKA(ZhenHua)

SADIQ (PEL)

MAZARANIKHUZDAR

GUNGA(BARYTES)

KIRTHAR(POGC)

KALAT

BLOCK 22(Hamza) (PEL)

KHANPUR (PEL)HASAN

(PEL)

HALA

KANDHKOTCHACHAR

MIANO (OMV)GAMBAT (OMV)S.W. MIANO-II (OMV)

SAWAN (OMV)LATIF (OMV)

QADIRPUR(OGDCL)

NUSHKI DILBAND(Iron Ore)

NOKKUNDI(Iron Ore)

SUI

BARKHAN

(BAHAWALPUR EAST)

TAL(MOL)

OFFSHORE INDUS- M(Eni)

OFFSHORE INDUS-N (Eni

OFFSHORE INDUS-G (OGDCL)

)

OFFSHORE INDUS-C (Eni)

A R A B I A N S E A

Quetta


P U N J A B


S I N D H

DHOK SULTAN

ZINDAN

DERA ISMIL KHAN

JUNGHSHAHI

SUKHPUR

SIRANI

NAUSHARO FIROZ

GAMBAT SOUTH

KOTRI NORTHKOTRI

ZAMZAMASOUTH

KHARAN

KHARAN WEST KHARAN EAST

KHYBERPAKHTUNKHWA

JHERRUCK

GHAURI(MGCL)

(BP Alpha)DIGRI

(NHEPL)

0 150 30075

Kilometers

Saudi Arabia Oman

Djibouti

Ethiopia

Eritrea

52°0'0"E50°0'0"E48°0'0"E46°0'0"E44°0'0"E42°0'0"E

18°0

'0"N

16°0

'0"N

14°0

'0"N

12°0

'0"N

Gulf of Eden

Red Sea

Yemen



SHABWAH

MA'RIB

ABYAN

LAHIJ

SAN'A'

SA'DAH

TA'IZZ

IBB

HAJJAH 'AMRAN

DHAMAR

AL BAYDA'

AL HUDAYDAH

AD DALI'

AL MAHWIT

(Yemen)Socotra

Abd al Kun(Yemen)

Al Ghaydh

Al MukallaAtaq

A Bayda

Marib

Al Hazm

Sa dah


Dhamar

Ibb

Taizz

Lahij Zinjiber

Aden

Ad Dali

Somalia

PPL Held InterestOctober 2010

PPL-operated

Partner-operated

EXPLORATION LICENCE

PPL-operated

Partner-operated

MINING / D&P LEASE

Under Execution

Farm-in Under Process

23

Exploration opportunitiesavailable with PPL

Recent extensive studies conducted in-house as well asby a consultant spanning over several years of datagathering and interpretation thereof suggest presence of

significant hydrocarbon resource potential in differentsedimentary basins of Pakistan. Besides significanthydrocarbon resource potential in the frontier BalochistanBasin, one of the astonishing outcome of these studies is thesuggestion that prominent hydrocarbon resource potential alsois expected in the mature Indus basins. This, coupled withenergy starved readily available domestic market providesenough impetus for continued exploration efforts with renewedvigor in these basins. Whilst exploration in frontier BalochistanBasin can still be carried out on the basis of modern version ofold technologies, exploration in the Lower Indus Basin, wherePakistan Petroleum Limited has recently acquired 8 explorationlicenses, will require state-of- the art acquisition andinterpretive techniques for finding hydrocarbons fromunconventional traps. These techniques are expected toconvert conventional and unconventional hydrocarbon resourcepotential in to reserves base, especially with reference tosubtle, stratigraphic traps, tight gas, shale gas etc.The following pages give a synopsis of the joint ventureexploration opportunities available to the sound, interested E & P companies.

24

TANDO ALAM

BUZDARTHORA & THORA EASTOGDCL

BUZDAR SOUTH DEEP

OGDCL

DABHI

OGDCLDARU

SONRO

MAZARI

KA TO

LAGHARI

JUNATHISOUTH

JALAL

KOLI

PIR

RIND

MUBAN

PANIRO

TAJEDI

TANDO GHULAM ALI

JAGIR

KUNAROGDCL

JHABERI SOUTH

JABO

TURK

ALI ZAUR

SAKHI DEEP

NORTH AKRIOGDCL

NUR

MAKHDUMPUR

KHORE WAH

OGDCLBAGLA

BHATTI

B P

FATEH SHAH

FATEH SHAH NORTHBP

MEYUN ISMAIL DEEPMEYUN ISMAIL

NORAI JAGIROGDCL

KEHOLE G

SHAHDINO

GHUNGHRO

GOLAROCHI

DUPHRI

KHASKHELI

S ONOOGDCL

OGDCL

SAKHI SOUTH DEEP

MISSRI

2468-5

(BADIN-IV SOUTH)PEL

TANDO ALLAH YAROGDCL

ZAUR WEST

ZAUR

LASHARI CENTREL & SOUTH

2468-6

(BADIN-IV NORTH)

PEL

2468-9JHERRUCK

NHEPL

2468-12K OTRI

BUKHARI DEEP

BUKHARI&

MATLI

LIARI

SOUTHMAZARI

P PL

NARI

2568-8OGDCL

(T.A YAR)

(KUNRI)

(KALOI)

2568-19(DIGRI)

2468-8

NHEPL

2468-7

PEL

2468-9JHERRUCK

NHEPL

BP(Alpha)

RAJ

2468-10(SIRANI)

PPL

(KOTRI)2468-12

PPL


P U N J A B

S I N D H


KHYBER

PAKHTUNKHWA

Sirani BlockLower Indus BasinProvince: Sindh Area: 2460.89 Sq.kmProspectivity Zone: III PPL’s Working Interest: 75%Play Type: Tilted Fault BlockExpected Hydrocarbon: Oil & Gas Reserves Exposure: 50-100 MMboGrant Date: 29 April, 2010Work Commitment: 1005 Work units

(US$MM 10.05)for 3 years

Total cost incurred to date(June 2010): US$MM 0.73

Location Map

TENTATIVE WORK PROGRAM*� 2D Seismic 500 L.Km

� 3D Seismic 655 Sq. Km

� 2 Exploratory wells

* The actual work program to be carried out in the block, will be based on technical merit and approval of JV partner inTechnical / Operating Committee meetings as stipulated in the Petroleum Concession Agreement.

WORK PROGRAM STATUSWork Completed

� G&G data purchase

� 2D seismic acquisition of 589 L.Km

Work in-progress

� In house G&G studies

25

Stratigraphic ColumnPetroleum SystemSOURCESembar Formation (Lower-Cretaceous)

RESERVOIR Lower Goru Sands (Lower Cretaceous)

SEALShales of Upper Goru & intraformational shales

TRAPTilted Faults Blocks

Salient Features� Four leads identified on vintage seismic data. New seismic

likely to yield more leads

� Proximity to the producing Badin fields to the west

� Possibility of finding additional leads in southern marshy areawhere no seismic data has been acquired. Good showsencountered in some wells in the block

� Nearby existing infrastructure

� Low cost drilling operations as minimum problems are expected.

� Possibility of early production through Extended Well Testing (EWT)

Dip Line

26

(JAKHRO)OGDCL

2567-5(JHANGARA)

2667-8(ZAMZAMA NORTH)

PEL

(GAMBAT SOUTH)2568-18(SUKHPUR)

2568-20

CHAK63-SE

HAKEEM DAHO

CHAK-63

RESHAM

ZAMZAMABHP

PPLEni

(GAMBAT)OMV

D&PL(KANDRA)

PEL

2668-4

HERITAGE

2667-11(ZAMZAMA SOUTH)

PPL

PPL(NAUSHAHRO FIROZ)

2668-9


P U N J A B

S I N D H

JAMMU & KASHMIR(Disputed Territory)KHYBER

PAKHTUNKHWA

Naushahro FirozLower Indus BasinProvince: Sindh Area: 2494.25 Sq.kmProspectivity Zone: IIIPPL’s Working Interest: 90%Play Type: Structural & StratigraphicExpected Hydrocarbon: GasReserves Exposure: 50-500 BcfGrant Date: 4 June, 2010Work Commitment : 805 Work units

(US$MM 8.05) for 3 years


Location Map







Work in-progress


� 2D seismic acquisition

27

Stratigraphic ColumnPetroleum SystemSOURCESembar/Goru shales (Lower Cretaceous)

RESERVOIR Sui Main Limestone (Eocene), Pab Sandstone (Cretaceous)

SEALGhazij (Eocene) & Ranikot / Khadro (Paleocene) shales

TRAPAnticlines, Stratigraphic pinchouts at Pab level

Salient Features� Northern part of the block lies in the prolific part of Sui Main

Limestone (SML) fairway

� Located near the kitchen area

� Possibility of finding stratigraphic traps-truncation of Pabwithin the block

� A lead and a reversal at SML level identified based on vintageseismic data

� Significant upside potential exists

� Located near existing infrastructure

� Faster and cheaper drilling operations

� Possibility of early production through Extended Well Testing (EWT)

POL(KIRTHAR SOUTH)

2567-7

2567-5(JHANGARA)

(ZAMZAMA NORTH)

PEL

Eni Pakistan

BHIT

BADHRA

ENI

(SUKHPUR)2568-20


2668-9

2667-12

ZAMZAMA

BHP

(KOTRI NORTH)2568-21

PPL

OGIL

Eni

(BARAN)

(KIRTHAR)POGC

2667-7

HERITAGE

2667-11(ZAMZAMA SOUTH)

PPL

(HAB)2566-4

2567-10(DAPHRO)PETRONAS


P U N J A B

S I N D H


PAKHTUNKHWA

Zamzama SouthLower Indus BasinProvince : Sindh Area: 843.99 sq KmProspectivity Zone: IIIPPL’s Working Interest: 100%Play Type: StructuralExpected Hydrocarbon: Gas Reserves Exposure: 500 -1000 BcfGrant Date: 4 June, 2010Work Commitment : 805 work units



Location Map





28



Work in-progress


Shallow Horizon

Near Top Pab

Shallow Horizon

Near Top Pab

Stratigraphic ColumnPetroleum SystemSOURCESembar/Goru shales (Lower Cretaceous)

RESERVOIR Mughalkot and Pab formations (Cretaceous)

SEALIntraformational shales of Mughalkot, Khadro/Ranikot shales forPab sandstone

TRAPCompressional / Faulted anticlines

Salient Features� Hydrocarbon prolific area, adjacent to Bhit (1.6 Tcf), Badhra

(114 Bcf) and Zamzama gas fields (2.32 Tcf & 12 Mbbl)

� Indications of independent leads on vintage seismic data

� Located adjacent to large kitchen area

� 80-130 m expected net reservoir thickness of Pab sands with porosity of 10-13%

� Significant portion of the block is covered by lake where noseismic data exists, possibility of finding structures

� Located near the gas infrastructure


� Possibility of early production through EWT

W E

S N

SML

29

Intrapaleocene stratigraphic potential

KirtharLakiDunghanRanikotPab

FATEH SHAH NORBP

2468-6

(BADIN-IV NOR

PEL

2468-9JHERRUCK

NHEPL

2468-12K OTRI

PP L

OGDCLSARI SINGH

POL(KIRTHAR SOUTH)

2567-7


OGDCL

1

(MIRPUR KHAS WEST)2568-16

PEL

(THANO BEG)2567-11

2468-9JHERRUCK

NHEPL

OGDCLHUNDI

2467-9SARI SOUTH

SELMALIRSEL

2467-13

(KOTRI)2468-12

PPL

JUNGSHAHI2467-12

PPL

2467-1(SAJAWAL)

MGCL


P U N J A B

S I N D H


PAKHTUNKHWA

Jungshahi Lower Indus BasinProvince : Sindh Area: 2459.26 Sq.kmProspectivity Zone: IIIPPL’s Working Interest: 100%Play Type: StructuralExpected Hydrocarbon: GasReserves Exposure: 50 -150 BcfGrant Date: 24 December, 2009Work Commitment : 505 work units



Location Map

TENTATIVE WORK PROGRAM*� 2D Seismic 685 L.Km.



30



� Geological Fieldwork and Mapping

� Seismic interpretation of vintage data

Work in-progress



Stratigraphic Column

Nari

Laki

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Upper Ranikot

Lower Ranikot

Khadro

Pab

Mughalkot ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Parh

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Upper Goru~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Lower Goru~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Sembar ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

FORMATION LITHOLOGYAGE

Oligocene

Eocene

Paleocene

Cretaceous

SOURCE RESERVOIR SEAL

Exploration: 20July10: Omair/Zaheer

Top Khadro

Stratigraphic ColumnPetroleum SystemSOURCEShales of Goru and Sembar Formations (Cretaceous)

RESERVOIR Upper Ranikot, Lower Ranikot (Paleocene), Pab, Mughalkotand Parh Formations (Cretaceous)

SEALShales of Laki (Eocene), Upper and Lower Ranikot (Paleocene)and Mughalkot and Parh Formations (Cretaceous)

TRAPNE-SW trending anticlines

Salient Features� Untested surface anticlines east of Hundi &

Sari gas fields

� Gas shows observed in Lower and Upper Ranikot

� Two structural leads identified on existing seismic data

� Located close to the Kitchen area

� Proven reservoir rocks of Paleocene and Cretaceouspresent

� Located close to the existing gas pipeline / infrastructureand major commercial hub Karachi

� Possibility of early production through Extended WellTesting (EWT)

SW NE

31

BUZDARTHORA & THORA EAST

OGDCL

MISANOGDCL

PASAKHI & PASAKHI NORTH


UMAR

DARS WESTDARS

SIRAJ SOUTH

BILAL

BILAL NORTH


B P

B P

BP

BP

OGDCLPALLI

2568-9NIM

OGDCL


2568-7(MIRPUR KHAS)

(KHIPRO)2568-6

2568-3(KHEWARI)

OGDCL


ALI

NAIMAT BASAL


PEL

KAMAL NORTH

(SUKHPUR)2568-20


2668-9

CHAK-5 DIM SOUTHOGDCL

CHAK-66

(SINJHORO)OGDCL

2568-5LALA JAMALI

CHAK63-SE

CHAK-7A

CHAK-2

HAKEEM DAHO

CHAK-63

RESHAM

OGDCL(BITRISIM)

2568-4

S.W. MIANO-IIOMV

KAUSAR

AHMED

USMAN

(KOTRI NORTH)2568-21 BP Pakistan

BP Pakistan

BP

BP

BPBP

(HALA)2568-13

PPLPPL

Eni

OMVSAWAN

KADANWARIENI

(GAMBAT)OMV

BOBI & DHAMARKIOGDCL

2668-4

HERITAGE

(JAKHRO)OGDCL

(GAMBAT SOUTH)2568-18

PPL


P U N J A B

S I N D H


PAKHTUNKHWA

Gambat South Lower Indus Basin

Province : Sindh Area: 2435.95 Sq.km Prospectivity Zone: IIIPPL’s Working Interest: 35%Play Type: Tilted Fault BlockExpected Hydrocarbon: GasReserves Exposure: 300 - 1000 BcfGrant Date: 24 December, 2009Work Commitment : 1200 Work units

(US$MM 12) for 3 yearsTotal cost incurred to date(June 2010): US$MM 0.18

Location Map





32



Work in-progress


Stratigraphic ColumnPetroleum SystemSOURCESembar and Lower Goru intra-formational shales (Cretaceous)

RESERVOIRSands of Lower Goru Formation (Early Cretaceous)

SEALIntraformational Lower Goru shales

TRAPTilted faults blocks/ Stratigraphic

Salient Features� Several leads mapped at Top Basal Sand level (in southern

part of the block)

� Possibility of finding stratigraphic plays within Lower Goruformation with significant potential

� Located close to the infrastructure


� Located in the area where there is proven hydrocarbongeneration

� Faster and cheaper drilling operations possible

Leads Location

33

34

TANDO ALAM

BUZDARTHORA & THORA EASTOGDCL OGDCL

DABHI

OGDCLDARU

SONRO

MAZARI

KA TO

LAGHARI

JUNATHISOUTH

JALAL

KOLI

RIND

MUBAN

PANIRO

TAJEDI

OGDCL

T

JAGIR


KUNAROGDCL

JHABERI SOUTH

TANDO ALLAH YOGDCL

TURK

UMAR

ALI ZAUR

SAKHI DEEP

DARS WESTDARS

NORTH AKRIOGDCL

NUR

MAKHDUMPUR

KHORE WAH

OGDCLBAGLA

BHATTI

B P

FATEH SHAH

FATEH SHAH NORTHBP


NORAI JAGIROGDCL

GOLAROCHI

DUPHRI

KHASKHELI

SONOOGDCL

OGDCL

SAKHI SOUTH DEEP

MISSRI

SIRAJ SOUTH

BILAL


ZAUR WEST

ZAUR


2468-6

(BADIN-IV NORTH)

PEL

2468-9JHERRUCK

NHEPL

2468-12KOTRI

BUKHARI DEEP

BUKHARI&

MATLI

LIARI

SOUTHMAZARI

BP

BP

B P

P PL

NARI

OGDCLPALLI

2568-8OGDCL

(T.A YAR)


2467-11(SAJAWAL)

MGCL

ALI

NAIMAT BASAL


PEL

2468-9JHERRUCK

NHEPL

KAUSAR

AHMED

USMAN


BP

BP

BPBP

(HALA)2568-13

PPLPPL

JUNGSHAHI2467-12

PPL

(KOTRI)2468-12

PPL


P U N J A B

S I N D H


PAKHTUNKHWA

KotriLower Indus BasinProvince: Sindh Area: 2377.64 Sq.km Prospectivity Zone: IIIPPL’s Working Interest: 100%Play Type: Tilted Fault BlockExpected Hydrocarbon: GasReserves Exposure: 50 - 300 BcfGrant Date: 29 April, 2010Work Commitment: 505 Work units



Location Map




34



� Geological Fieldwork

Work in-progress


35

Stratigraphic ColumnPetroleum SystemSOURCESembar Formation and Lower Goru Shales (Cretaceous)

RESERVOIRRanikot sands (Paleocene), Pab sandstone & Lower Goru sands(Cretaceous)

SEALUpper Goru shales (Cretaceous), Shales of Upper Ranikot,Khadro (Paleocene) and Laki Formation (Eocene)

TRAPAnticlinal / fault associated closures

SW NE

Chiltan

Lower Goru Basal Sand

Top Lower Goru

Salient Features� Four leads identified through geological fieldwork and

vintage seismic data

� Possibility of finding stratigraphic play with significantpotential within Lower Goru Formation



� Located close to gas infrastructure and major urban centre

35

TANDO ALAM

THORA & THORA EASTOGDCL

DABHI

OGDCLDARU

MAZARI

KA TO

JUNATHIJALAL

RIND

OGDCL

JAGIR


KUNAROGDCL

TURK

ALI ZAUR

SAKHI DEEP


NORAI JAGIROGDCL

SONOOGDCL

OGDCL

SAKHI SOUTH DEEP


ZAUR WEST

ZAUR


2468-9JHERRUCK

NHEPL

2468-12KOTRI

BUKHARI DEEP

BUKHARI&

MATLI

LIARI

P PL

(JAKHRO)OGDCL

2568-8OGDCL

(T.A YAR)

POL(KIRTHAR SOUTH)

2567-7


2567-5(JHANGARA)

PEL

ALI

Eni PakistanBADHRA

2468-9JHERRUCK

NHEPL

OGDCLHUNDI

KAUSAR

AHMED

USMANBP

BPBP

(HALA)2568-13

PPL

(KOTRI)2468-12

PPL

JUNGSHAHI2467-12

PPL


PEL


PPL


P U N J A B

S I N D H


PAKHTUNKHWA

Kotri NorthLower Indus BasinProvince: Sindh Area: 2471.69 Sq.kmProspectivity Zone: IIIPPL’s Working Interest: 90%Play Type: Structural / StratigraphicExpected Hydrocarbon: GasReserves Exposure: 100 - 300 BcfGrant Date: 29 April, 2010Work Commitment: 505 Work units



Location Map




36



Work in-progress



Stratigraphic ColumnPetroleum SystemSOURCESembar Formation and Lower Goru Shales (Cretaceous)

RESERVOIRRanikot sands (Paleocene), & Lower Goru sands (Cretaceous)

SEALUpper Goru shales, (Cretaceous) Shales of Upper Ranikot,Khadro Formation (Paleocene)

TRAPAnticlinal / fault associated closures

Salient Features� Two leads mapped at Base Ranikot level

� Three Leads mapped at Lower Goru level.

� New seismic acquisition is expected to yield several traps asthe block is tectonically located in the same regime wherethere are already several discoveries

� Located close to the gas infrastructure

� Early production possible through EWT

37

Exploration 20July10 SAH

sou

rce

Res

ervo

ir

Sea

l

RANIKOT

KHADRO

STRATIGRAPHY KOTRI NORTH

CHILTAN

SEMBAR

LOWER GORU

UPPER GORU

M.KOT/F.MUNRO

PARH

PAB

LAKI

ALLUVIUM

STRATIGRAPHYAGE

PLIO./PLEIST.

EOCENE

PALEOCENE

CRETACEOUS

JURASSIC

LITHOLOGY

38

DHULIANPOL

OGDCL

POLMEYAL

DAKHNIOGDCL

POL

BHAL SYEDAN

IKHLAS3372-18

(KOHAT)3371-10

CHANDAOGDCL

(MIANW ALI)3271-3

RATANAOPII3371-5

(GURGALOT)OGDCL

(SOGHRI)3371-8

OGDCL

(PESHAWAR)3371-13

KHAURPOL

OGDCL

(MAKHAD)3271-5

TOGDCL

OGDCL

PARIWALIPOL

HYCARBEX

NHEPL

MAKORI

OPII(NORTH RATANA)

3372-24

3271-6

(POTWAR SOUTH)SPUD ENERGY

(HAZRO)SEL

3372-26

3371-15(DHOK SULTAN)

PPL

UCHRI

TOOT


P U N J A B

S I N D H


PAKHTUNKHWA

Dhok SultanUpper Indus BasinProvince : Punjab/Khyber

Pakhtunkhwa Area: 703.23 Sq.km Prospectivity Zone: IPPL’s Working Interest: 75%Play Type: Structural / StratigraphicExpected Hydrocarbon: OilReserves Exposure: 25 - 40 MMboGrant Date: 16 February, 2010Work Commitment : 505 Work units



Location Map


� 1 Exploratory well




Work in-progress


39

Siwalks

Kohat

Kuldana

Chorgali

Sakesar

Nammal

Patala

Lockhart

Hangu

Lumshiwal

Chichali

Samana Suk

Shinawari

Datta

Kingriali

Tredian

Mianwali

Alluvium

FormationAge Lithology

Sou

rce

Res

ervo

ir

Sea

l

Gen

erat

ion

Tra

ps

QuatHolocenePleistocene

Mio

cene

- P

lioce

neE

ocen

eP

aleo

cene

Ear

lyM

iddl

e -

Late

Ear

ly

Late

Middle

EarlyTria

ssic

Jura

ssic

Cre

tace

ous

Teiti

ary

CE

NO

ZO

ICM

ES

OZ

OIC

STRATIGRAPHY DHOK SULTAN

Exploration 15 Mar10 Zaheer

Stratigraphic ColumnPetroleum SystemSOURCEPatala Shales (Paleocene), Chichali, Lumshiwal shales(Cretaceous) and Datta shales (Jurassic)

RESERVOIRChorgali / Sakesar (Eocene), Lockhart Formation (Paleocene),Lumshiwal/Hangu (Cretaceous-Paleocene), Samanasuk andDatta (Jurassic)

SEALKuldana/Chorgali Shales (Eocene), Patala Formation(Paleocene), Intraformational shales of Lumshiwal (Cretaceous)and Datta (Jurassic)

TRAPFault associated three way dip closures

Salient Features� 1 Prospect confirmed on existing seismic.

Additionally 2 structural and 1 stratigraphic lead atCretaceous level identified

� Profilic hydrocarbon habitat and surrounded by Oil andGas fields.

� Possibility of multiple reservoirs.� Nearby infrastructure� Early production possible through EWT� PPL operates a gas / condensate field, Adhi, in Potwar

40

(MIANWALI)3271-3

OGDCL

(PAHARPUR)SEL

3170-5

3270-9(KARAK WEST)

OGIL

(KARAK)3271-1

MGCL

(MAKHAD)NHEPL

3170-7

3171-3(KHIU)

(HETU)

3171-2(NURPUR)

(ZINDAN)PPL

3270-7

3270-8(DALWATI)

MGCL


P U N J A B

S I N D H


PAKHTUNKHWA

ZindanUpper Indus BasinProvince: Punjab/Khyber

Pakhtunkhwa Area: 2495.63 Sq.kmProspectivity Zone: IPPL’s Working Interest: 35%Play Type: Structural / StratigraphicExpected Hydrocarbon: OilReserves Exposure: 50 - 100 MMboGrant Date:* 16 February, 2010Work Commitment : 339 Work units



Location Map

* Operatorship with 95% working interest transferred to PPL on 13 April 2010.

**JV partner approved the work program for 3 years in 1st Technical / Operating Committee meeting in May 2010.

Kundal Oil Seep

WORK PROGRAM**� 2D Seismic 800 L.Km

� 3D Seismic 200 Sq. Km (Contingent)



Work in-progress


41

SIWALIKS

SAMANASUK LST.

B A R O C HL I M E S T.

DATTAFM.

S A I Y D U W A L I G Y P S E O U S B E D S / J U T A N A

KINGRIALIFM.

KINGRIALIDOL.

KINGSST.

TREDIANSST.

MIANWALIFM.

CERATITEBEDS

CHIDRUFM.

BELRPNBEDS

VA

RIG

AT

ED

SA

ND

ST

ON

EP

RO

DU

CT

US

LIM

ES

TO

NE

AM

B F

M.

WA

RG

AL

FM

.

SARDHAIFM.

LAV.CLAY

WARCHASST.

SPECKLEDSST.

OLIVE SR.TOBRA FM

BAGHANWALA /KHISOR

MIO

CE

NE

/ P

LIO

CE

NE

JU

RA

AS

ICT

RIA

SS

ICP

ER

MIA

NC

AM

BIR

AN

STRATIGRAPHY LITHOLOGY TECTONICS

COMPRESSION

RESERVOIRS SEALSSOURCE

REGIONAL UPLIFT& TRUNCATION

GENERALIZED STRATIGRAPHY OF ZINDAN BLOCK

PATALALUMSHIWALCHICHALI

K U S S A K

K H E W R A S S T

AGE

PALEOCENE

CRETACEOUS

SHINAWARILIMEST.& SHALE

DANDOT FM

?? ?

Exploration 19July2010 Zaheer

PC

Stratigraphic ColumnPetroleum SystemSOURCE : Paleocene and Precambrian Shales

RESERVOIRLumshiwal (Cretaceous), Datta and Samanasuk (Jurassic),Kingriali (Triassic), Tobra, Warchha and Dandot (Permian) andKhewra (Cambrian)

SEALIntraformational shales of Siwaliks (Oligo-Miocene), Patala(Paleocene), Datta (Jurassic), Kingriali, Tredian (Triassic),Sardhai, Amb / Wargal and Warchha (Permian) and Kussakshale (Cambrian)

TRAPAnticlinal / Fault associated closures / Stratigraphic

Salient Features� Available data of Marwat-1 well (1970) suggest multiple

reservoir zones from Jurassic down to Cambrian

� Active seep is present at Kundal within the block whichconfirm the existence of working petroleum system

� No seismic data is present in prolific part of the block. Leads are identified on surface geological mapping

Form line Map on Top Jurassic based onmeasured outcrop structural dips

Marwat-1 well, probably drilled outside of structural closure on NWdipping flank of anticline

Kundal Oil Seep

OGDCL

3070-10(SAFED KOH)

3071-3

OGDCL

DHODAK

RODHODPL

(PAHARPUR)SEL

3170-5

DPL

ZAVER(LORALAI)

SEL

3070-16(PEZU)

3170-7

3171-3

3170-8

3070-17(LAYYAH)

(KULACHI)

(KHIU)

(HETU)

3171-2(NURPUR)

3170-6(DERA ISMAIL KHAN)

PPL

(ZINDAN)PPL

3270-7(DALWATI)MGCL

(MULTANNORTH)


P U N J A B

S I N D H


PAKHTUNKHWA

Dera Ismail KhanMiddle Indus BasinProvince : Punjab and Khyber

Pakhtunkhwa Area: 1419.03 Sq.km Prospectivity Zone: IIPPL’s Working Interest: 100%Play Type: StratigraphicExpected Hydrocarbon: GasReserves Exposure: 75 - 500 BcfGrant Date: 29 April, 2010Work Commitment : 405 Work units



Location Map


� 3D Seismic 245 Sq. Km.


42



Work in-progress


AGE

DADA CONG.

CHAUDHWAN

LITRA

VIHOWA

CHITARWATTA

KIRTHAR

GHAZIJ

LAKI/SUI MAINLIMESTONE

DUNGHAN

RANIKOT/KHADRO

M.KOT/F.MUNRO

PARH

GORU

CHILTAN

WULGAI/ALOZAI

PERMIAN

SHIRINAB LORALAI

SIW

AL

IKS

OL

IGO

CE

NE

-PL

IOC

EN

EE

OC

EN

E

PAB/MORO

PIRKOHSIRKI

HABIB RAHI

DRAZINDA

PA

LE

OC

EN

E

CR

ETA

CE

OU

S LA

TE

EA

RLY

LA

TE

JUR

AS

SIC

MID

DL

EE

AR

LY

TR

IAS

SIC

SAMBAR ?

SO

UR

CE

RE

SE

RV

OIR

SE

AL

PLAY ELEMENTS

LITHOLOGYGROUPFORMATION

?

?

?

?

?

?

?

?

?

?

?

?

?

?

REGIONAL STRATIGRAPHY D. I KHAN

Stratigraphic ColumnPetroleum SystemSOURCEGoru/Sembar Formation (Cretaceous) , Habib Rahi Limestone(Eocene)

RESERVOIRHabib Rahi and Pirkoh Limestones (Eocene) and RanikotFormation (Paleocene)

SEALBase Oligocene unconformity as top seal and intraformationalEocene shales

TRAPStratigraphic pinch-out/truncation against base Oligoceneunconformity and carbonate buildups

Salient Features� Potential for stratigraphic play of Eocene Habib Rahi

Limestone (one of the large gas producing reservoirs ofPakistan, with over 6.8 Tcf recoverable reserves) andPaleocene Ranikot formations truncating against baseOligocene unconformity

� Significant upside potential

43

Conceptual Petroleum System of D. I. Khan Block

2763-2(SHAHANA)

OGDCL

NATIVUS

2763-1(LADGASHT)

(NAUSHERWANI)

2764-2(RAKHSHAN)

MGCL

MGCL

2864-2

(KHARAN)PPLPPL

2763-4(KHARAN WEST)

2763-3

PPL

2764-3(PALANTAK)

(KHARAN EAST)PPL

2764-4

2763-5(SOUTH KHARAN)

HERITAGE


P U N J A B

S I N D H


PAKHTUNKHWA

Kharan, Kharan East,Kharan WestBalochistan BasinProvince : Balochistan Area: 2481.14, 2489.67 and

2487.37 Sq.km respectivelyProspectivity Zone: IPPL’s Working Interest: 100%Play Type: FrontierExpected Hydrocarbon: OilReserves Exposure: 100 - 1000 MMboGrant Date: 21 January, 2010 (Kharan,

Kharan East), 16 February, 2010(Kharan West)

Work Commitment : 101 Work units per block (US$MM 1.01 for each block) for 3 years


Location Map


� Basin Modeling studies


44

WORK PROGRAM STATUSWork in-progress



Exploration 060709 Zaheer

Stratigrapic Column

PLEIST-RECENT

PLIOCENE

MIOCENE

OLIGOCENE

EOCENE

PALEOCENE

CRETACEOUS

LATE

EARLY

Am

alaf

(0.

3 K

m)

Nau

roz

(0.6

Km

)S

iaha

n F

orm

atio

n

San

dak

(2.5

Km

)

Kha

ran

Rakhshani(max2.5 Km)

SinjraniVolcanicGroup

(<3 Km)

KU

CH

AK

I VO

LCA

NIC

S

Kamarod

?

AGE Lithology Formation Source Reservoir Seal

Pan

jgur

Sandstone

Shale Volcanics

Limestone

Stratigraphic ColumnPetroleum SystemSOURCEKharan Limestone (Eocene), Rakhshani Shales (Paleocene)

RESERVOIR :Rakhshani Sandstone (Paleocene), Kharan Limestone (Eocene)& Siahan Sandstone (Oligocene)

SEAL:Intraformational Shales of Rakhshani Sandstone and SiahanSandstone. Shales of Lower Siahan Formation to seal KharanLimestone

TRAP:Fault bounded anticlines or tilted fault blocks

NW SE

Salient Features� Frontier area , no seismic acquisition in the blocks

� Located in the Kharan Fore-Arc Basin

� Existing seismic in north east of the block showsstructuration, this can be projected as expected potentialtraps within the blocks

� The Cross Sections based on gravity / magnetic data andformation thickness measured in the field, suggest presenceof multiple traps within the block boundary

� Analogy with the producing Cook Inlet Basin, Alaska andSalin Basin, Myanmar

� Gravity / Magnetic data suggests basement depths up to 10 km

� Analysis of potential source rocks collected during field work shows fair source rocks which are expected to improve in the basin

� Focal mechanical data suggest extension as well ascompression in the area. Seismic acquisition will confirm thesub-surface structures and basin history Seismic Line from NE of the blocks

45

QUETTA

PPL

2966-1(NUSHKI)

MGCL

3066-4

2967-3(QUETTA SOUTH)

OGIL

(KALAT)2866-2

PPL

(KHUZDAR NORTH)2866-3

OGDCL

2866-4(MARGAND)

3066-5(BOSTAN)

OMV

2865-3(KHARAN-3)

(HANNA)


P U N J A B

S I N D H


PAKHTUNKHWA

NushkiBalochistan BasinProvince : BalochistanArea: 1781 Sq.kmProspectivity Zone: IPPL’s Working Interest: 65 %Offered WI: upto 30 %Play Type: StructuralExpected Hydrocarbon: GasReserves Exposure: 500 Bcf to 1 TcfGrant Date: October 2003Total cost incurred to date(June 2010): US$MM 5.725

Location Map

WORK PROGRAMContract Year Minimum Work

First Year G&G studies, gravity and magnetic surveys (750 line km) – (US$ 0.35 million)

Second Year Seismic acquisition- 50 line km (optional) – (US$ 0.756 million) Third Year GIB (optional) – (US$ 3.0 million)

WORK PROGRAM STATUSWork Completed � In-house G & G studies

� Geological fieldwork and report writing� Lab analyses of rock samples� Gravity and magnetic surveys of 821 stations (779 L km)� Processing/interpretation of gravity/magnetic data� Structural & Stratigraphic interpretation based on satellite imagery � Remote Sensing Study to detect “Spectral Anomalies” induced

by hydrocarbon micro seepage� Structural Modeling Study� In-house source rock evaluation and basin modeling study� 2D seismic acquisition� Seismic data processing through TBI (Thrust Belt Imaging)

In-Progress � In-house interpretation of processed 2D seismic data

46

Petroleum SystemSOURCENimargh Formation (Early Eocene), Wakabi Formation(Late Eocene) and Shirinab Formation (Jurassic)

RESERVOIRShaigalu (Oligo-Miocene), Wakabi Formation (LateEocene- Early Oligocene), Nimargh Limestone (EarlyEocene) and Shirinab Formation (Jurassic)

SEALShales of Murgha Faqirzai (Oligocene) to seal EoceneReservoirs

TRAPAnticlines

SEAL

ShaigaluMember

Nimargh Limestone

Shirinab Formation

EOCENE

OLI

GO

CE

NE

TO

E-M

IOC

EN

E

RECENT/SUB-RECENT

SOURCE RESEVOIRFORMATIONLITHOLOGYAGE

?

Wakabi Formation

Murgha FaqirzaiMember

JURASSIC

Kho

jak

For

mat

ion

2500

m+

+11

50m

+16

5m15

00m

+

Stratigrapic Column

Paleocene-Cretaceous Flysch

Ophiolite

+20

0m


47

OGDCL(SARUNA)

2567-4

MAZARANIPPL


(KHUZDAR SOUTH)2667-9

(KALAT)2866-2

PPL

(KHUZDAR NORTH)2866-3

OGDCL

2767-1

PETRONAS(MEHAR)

(MEHAR)D&PL

PETRONAS

2667-12

ZAMZAMABHP

OGIL

JHAL MAGSI SOUTHOGDCL

(BARAN)

HERITAGE

(KHUZDAR)PPL

2766-1


P U N J A B

S I N D H


PAKHTUNKHWA

Location Map

KhuzdarKirthar FoldbeltProvince: BalochistanArea: 2498 Sq.kmProspectivity Zone: IIPPL’s Working Interest: 65 %Offered WI: up to 30 %Play Type: StructuralExpected Hydrocarbon: GasReserves Exposure: 1-2 TcfGrant Date: March 2004Total cost incurred to date(June 2010): US$MM 8.427

WORK PROGRAMContract Year Minimum WorkFirst Year Data purchase and G&G studies (US$ 0.03 million)Second Year Geological fieldwork mapping, source and reservoir rock analyses

and Gravity Survey -1000 points (US$ 0.145 million)

Third Year Micro-seep and seismic surveys- 160 line m (US$ 1.325 million)

WORK PROGRAM STATUSWork Completed � Data purchase and review

� In house G&G study� Structural / Stratigraphic Interpretation based on

Satellite Imagery � Geological fieldwork, structural mapping, report writing and

lab analyses of field samples� Gravity and Magnetic surveys (1,214 points) � Processing/interpretation of gravity/magnetic data� Remote sensing study to detect “Spectral Anomalies”

induced by hydrocarbon micro seepage� Structural Modeling Study� Source rock evaluation and basin modeling study� Microseep Survey� Seismic acquisition

In-Progress � Processing of newly acquired seismic data

48

Petroleum SystemSOURCEShales of Ghazij (Eocene), Anjira (Jurassic) and Infra-Cambrian

RESERVOIRSpingwar Formation (Jurassic) in the SE of the block,Cambrian and Permian clastics

SEALIntraformational shales of Spingwar Formation and tightcarbonates of Loralai Formation to seal SpingwarFormation and Intraformational shales of Paleozoic toseal Cambrian and Permian

TRAPAnticlines

OLIG

OC

ENE

AGE

PERIOD

RECENT

FORMATION

ALLUVIUM

LITHOLOGY

EO

CE

NE

PA

LE

OC

EN

E

MID

DLE

EA

RL

Y

NARI

KIRTHAR

GHAZIJ

DUNGHAN/RANIKOT

BARTONIAN

LUTETIAN

YPRESIAN

THANETIAN

LA

TE

KHADRO

PARH

DANIAN

SEMBAR

C O N I A C I A NT U R O N I A N

CENOMAINIAN

ALBIAN

CR

ET

AC

EO

US

EA

RLY

APTIAN

S A N T O N I A N

CE

NO

ZO

IC

ME

SO

ZO

IC

GORU

PAB

MUGHALKOT

MAASTRICHTIAN

MONTIAN

BARREMIAN

HAUTERIVIAN

ANJIRALORALAISPINGWAR

CHILTANE

AR

LYM

ID

JUR

AS

SIC

SY

STE

M

CAMPANIAN

VALANGINIAN

BERRIASIAN

PETROLEUM SYSTEM

BATHONIAN

BAJOCIANAALENIANTOARCIANPLEINSBACHIANSINEMURIANHETTAGIAN

RUPELIAN

CHATTIAN

Qua

t’y

PLE

IST

TRIA WULGAI (Alozai)

PE

RM

IA

N

Zaluch Group

Nilawahan Group /Jamal

CA

RB

O-

IFE

ED

EV

ON

IAN

SOU

RC

E

RE

SE

RV

OIR

SE

AL

SARDAR

BEHRAMSIBZARPADEHANIURCEPHALOPODLIMESTONE

VVVVVV

V V V V V V V

Q Q Q Q

V V V

V V

MILA

LALUN

BASEMENT

CA

MB

RIA

NIN

FR

AC

AM

BR

IAN

SIL

UR

IAN

OR

DO

V-

ICIA

N

PA

LE

OZ

OI

CP

RE

CA

MB

RIA

N

VV

VSALT RANGE/HORMUZ


Lead Map

49Exploration 17July10 Zaheer

Sea level Sea level

-2000m

NA

No

rth

en G

aj A

nti

clin

e

No

rth

en B

ini R

iver

An

ticl

ine

Kar

kh A

nti

clin

e

LegendBasment

Salt

PZ

TR

ZD

PS

Basment

Basment

Basment

Basment

Basment

Basment

Basement

Basement

saltsalt

salt

PZPZ

PZ

ZDZD

CN

CN

ZD

PZ

PZ

ZDZD

TRTR

TRTR

TR

TR

PS

PSPS

PS

PS

PS

NABR

NA

BRJB

PBPB

JBJBNA

2000m

-2000m

-4000m

-6000m

-8000m

W E

2000m

-4000m

-6000m

-8000m

salt

NA

GH

PB

JB

Structural Cross section of Khuzdar Block.

Structural Cross section of Khuzdar Block

Eastern Offshore Indus-CIndus Offshore BasinOperator: Eni Pakistan LimitedLocation: Indus Offshore

PakistanArea: 2,493 Sq.KmProspectivity Zone: ZeroPPL’s Working Interest: 40 %Offered WI: Up to 20 %Play Type: Stratigraphic &

StructuralExpected HC: Gas and /or OilReserves Exposure: 1-2 Tcf or

200 MMboGrant Date: October 2006Total cost incurred to date(June 2010): US$MM 18.005

WORK PROGRAMContract Year Minimum Work Minimum Financial

Commitment Commitment

First Year (Phase-I) 99.8 Work unit (firm) US $ 2.2 millionSecond Year (Phase-I) 119.8 Work unit (firm)Third Year (Phase-II) 550 Work unit (firm) US $ 5.5 millionFourth Year (Phase-II) 158.5 Work unit (contingent) US $ 1.585 millionFifth Year (Phase-III) 222 Work unit (contingent) US $ 2.22 million

WORK PROGRAM STATUSWork Completed � 403.1 work unit completed (402 sq. km 3D, 222 L.km 2D and

Integrated G&G studies) and 183.1 excess work unit carried forward to Phase-2. 200 Sq. Km PSDM completed

Work in-progress � Evaluation and ranking of identified prospects

Planned Work � Drilling of Exploratory well

(OFFSHORE INDUS-M)Eni

2366-4

2366-5

Eni(OFFSHORE INDUS-N)

PEL

(OFFSHOREINDUS-P)

EASTERN OFFSHORE INDUS-AOGDCL

2366-6

2266-4OFFSHORE

INDUS-JPEL

OGDCL

2267-1(OFFSHORE BLOCK-R)

2266-8(OFFSHORE BLOCK-S)

2365-3

2465-3(OFFSHORE INDUS-X)

2466-7OFFSHORE INDUS NORTH

PELINDUS-O

OFFSHORE2266-7

NIKORESOURCESPAKISTAN


BP(Alpha)

EASTERN OFFSHORE INDUS-C2366-7

Eni

(OFFSHORE INDUS-Z)2466-6


Location Map


P U N J A B

S I N D H


PAKHTUNKHWA

50

Reservoir Source

ProgradingDelta

CarbonateSequence

Miocene Slope

Platform

MioceneShelf Delta

Shelf DeltaSequence

AGE

KARACHI PLATFORMINDUS OFFSHORE

SW NE

Upper

Middle

Lower

Oligocene

Eocene

Paleocene

Cretaceous

MIO

CE

NE

Pliocene-Pleistocene


Stratigraphic ColumnStratigraphic Column

Lead Map

Petroleum SystemSOURCEPaleocene, Eocene and Miocene shales

RESERVOIREocene platform carbonates, Channelsands of Miocene/Pliocene

SEALIntra-formation shales of the mud richMiocene fan system provide lateral andtop seal

TRAPFour way dip closure of platformcarbonates, fault bounded three way dipclosure at Eocene level

Combination of structure plus canyonerosion and mud infill create mixedstructural-stratigraphic traps at Miocenelevel.

51

Block 29 (Yemen)South Rub Al Khali BasinOperator: OMV Yemen

Location: Onshore

Area: 9,237 sq.km

Prospectivity zone: Frontier play

PPL’s Working Interest: 43.75 %

Offered WI: Up to 20 %

Play type: Structural

Expected HC: Oil

Reserves exposure: 100-500 MMbo

Total cost Incurred to date (July 2010) US$ 3.65 MM

0 150 30075

Kilometers

Saudi Arabia Oman

Djibouti

Ethiopia

Eritrea

52°0'0"E50°0'0"E48°0'0"E46°0'0"E44°0'0"E42°0'0"E

18°0

'0"N

16°0

'0"N

14°0

'0"N

12°0

'0"N

Gulf of Eden

Red Sea

Yemen



SHABWAH

MA'RIB

ABYAN

LAHIJ

SAN'A'

SA'DAH

TA'IZZ

IBB

HAJJAH 'AMRAN

DHAMAR

AL BAYDA'

AL HUDAYDAH

AD DALI'

AL MAHWIT

(Yemen)Socotra

Abd al Kun(Yemen)

Al Ghaydh

Al MukallaAtaq

A Bayda

Marib

Al Hazm

Sa dah


Dhamar

Ibb

Taizz

Lahij Zinjiber

Aden

Ad Dali

Somalia

Location Map

WORK PROGRAM STATUSWork Completed� 1D Basin Modeling

� GIS interpretation

� Potential vintage Grav / Mag data studies

Work in-progress


� Planning of Grav / Mag data acquisition

WORK PROGRAMMinimum Work Firm Expenditure (US $)Reprocess available seismic data 1,000,000Conduct, Acquire, Process & Interpret 6,000,0001000 km of 2D seismic data Drilling of one (1) Exploration Well with a minimum 8,000,000depth (200) meters in the Basement

Total Minimum Financial Commitment 15,000,000

52

Graphic: Hashmi

UP

PE

R

FM LITHOLOGY PROD RESERVOIR

PA

LE

OC

EN

E

UMMER

RADHUMA

SHAKWAYN

MUKALLA

TE

RTA

RY

FARTAQ

MID

DL

E

UPPERHARSHIYAT

MIDDLE& LOWER

HARSHIYAT

QISHNCARBONATERED SHALE

QISHNCLASTIC

LOWER QISHNCLASTIC

CLASTIC

SAAR

NAIFA

MIDDLE SHALE

MIDDLE LS.

BASAL SAND

SHUQRA

KOHLANBASEMENT

JUR

SS

IC

UP

PE

R

MIDDLE

LO

WE

R

CR

ETA

CE

OU

S

EOCENE

AGE

V V V V V V V V V

Uppre Tertiary

Lower Tertiary

Upper Cretaceous

Lower Cretaceous

Jurassic Limestone

Sandstone (L. Cretaceous Qishn & Jurassic Kohlan)

Block 29

Hathout 1Rub Al Khali

Taur 2

Al Fatk 1XJesa Basin

Sunah Sunah

Sharmah 1

Gulf of Aden

Kohlan ssreservoir

Reservoir sectionClastic equivalent in

Trough

Approximate top oilWindow 2000m

km

0

1

2

3

4

5


1 2N. Hadramauthigh

Qishn ss

Reservoir Section

Mukalla source

Modifed from SJ Mills, 1992 & SK Paul,1990: Classic PetroleumProvinces: Geol. Soc.Special Pub: no.50

Cross section of Yamen Block


Conceptual Play Model

SOURCE: Mukallah shales and coals (LateCretaceous) Harshyat shales and coals (E-LCretaceous) with good source potential

RESERVOIR: Qishn carbonate and clastics (EarlyCretaceous) as the regional equivalent of a world-class carbonate reservoir (Shu‘aiba), Mukallahsandstones (Late Cretaceous) and Granitic Basement(Precambrian)

SEAL: Basal Harshyat shales (seal for Qishn), IntraMukallah shales and Sharwayn carbonate (seal forMukallah sandstone) and Weathered/tight Basement/Paleozoic shales (seal for Granitic Basement)

TRAP: Tilted-fault blocks

53

54

ContactsMoin R. Khan General Manager Exploration

Abdul Wahid Senior Manager Business Development

Pakistan Petroleum LimitedP. I. D. C. House, Dr. Ziauddin Ahmed RoadP. O. Box 3942, Karachi - 75530PakistanPhone Nos: 92-21-35680411, 111-568-568Fax Nos: 92-21-35680005, 35682125Email: [email protected]

[email protected][email protected]

For further information on PPL, please visit our website at www.ppl.com.pk

PIDC House, Dr. Ziauddin Ahmed RoadP. O. Box 3942, Karachi 75530UAN: + 92-21-111-568-568Telephones: +92-21-5651480-89Fax: +92-21-35680005; 35682125Email: [email protected] Website: www.ppl.com.pk

e&p brochure-november

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