Rate of depletion at Sui reduced – Alfalah Securities Limited

Karachi, August 23, 2012 (PPI-OT): With the efforts of Petroleum Limited (PPL), the operator of the Sui Gas Field (SGF), the continuous depleting trend natural gas reserves in Sui have been reduced to 3% per annum which were depleting at an average rate of 5% p.a. and these gas reserves were anticipated to exhaust in the next 10 years.

According to Alfalah Securities Limited, efforts are still under way to lower it further to sustain gas supply for a longer period, as reported in the local newspaper. The Sui Gas Field was discovered in 1952 and the field accounts for 26% of Pakistan total gas production. Its remaining reserves are estimated to be at 2 trillion cubic feet. PPL is likely to reap benefit by lowering the rate of depletion of Sui field. Alfalah Securities Limited recommends a BUY on PPL with target price of PKR 253.37 and FY13E P/E of 5.4x.