-
Lower cost
-
Incremental
-
Repeatable
-
Cash-flow friendly
Pakistan does not need to choose between the two—but onshore gas is where near-term energy security is actually built.
The Economics: Conservative, Boring, Profitable
Let’s strip out emotion and run cautious numbers.
Assumptions
-
Tested rate: 1.58 MMSCFD
-
Sustainable rate (downtime adjusted): 1.3 MMSCFD
-
POL share (25%): 0.325 MMSCFD
-
Annual gas volume: ~119 MMSCF
-
Gas price: PKR 3,000/MMBtu
-
Royalty (~12.5%): Net PKR 2,625/MMBtu
-
Corporate tax: ~29%
-
Operating costs: Low
Result
-
Annual revenue (POL share): ~PKR 312 million
-
Estimated net profit: ~PKR 220 million
-
Shares outstanding: ~215 million
-
EPS uplift: ~PKR 1 per share
This is not upside optionality.
This is base-case accretion.
Gas wells do not need to impress Twitter.
They need to pay dividends.
Technical Reality Check: Pressure, Flow & the Acid Job
Critics are correct on one technical point:
Initial pressures and flow rates are currently low for unquestioned commerciality.
That is precisely why:
-
Acid stimulation is underway
-
Lockhart formation DST remains pending
POL’s disclosure explicitly warns that actual production may differ significantly from test results—a regulatory obligation often ignored in social media takes.
This is still a live technical story.
Zooming Out: Pakistan’s Upstream Is Quietly Improving
Biltang-1 does not stand alone.
Recent confirmations include:
