Karachi: Pakistan Petroleum Limited (PPL), the primary operator of the Dhok Sultan block, has announced a substantial oil and gas discovery at its Dhok Sultan-03 well. This marks the second successful find by PPL at this location.

PPL holds a 75% working interest in the block, with Government Holdings Private Limited as its joint venture partner, holding the remaining 25%. The drilling of well Dhok Sultan-03 commenced on January 18, 2025, reaching a depth of 5,815 meters to evaluate the hydrocarbon potential of the Patala and Lockhart formations.

The well testing revealed a flow of 1,469 barrels per day (bpd) of oil and 2.56 million cubic feet per day (mmcfd) of gas at a wellhead flowing pressure of 1,147 pounds per square inch gauge (psig) on a 32/64″ choke. Further testing indicated increased flow rates of 2,113 bpd of oil and 4.13 mmcfd of gas at a reduced pressure of 813 psig on a 48/64″ choke.

This discovery is projected to have an annualized impact of PKR 1.76 per share on PPL’s profitability.

AKD Securities Limited maintains a ‘BUY’ recommendation on PPL, forecasting a target price of PKR 281 per share by December 2025, suggesting a 55% upside from current levels. This outlook is supported by ongoing structural reforms in gas pricing, progress in resolving circular debt, and PPL’s diversification into mining assets and exploration licenses.