22-03-99 Lasmo has announced the success of the Badhra-2 exploration well, drilled in the Kirthar concession in Western Sindh province, Pakistan.
The well has discovered the second gas field within the concession area, following the Bhit field which was discovered in 1997.
Lasmo is operator and its partners are Kirthar Pakistan (Premier Shell Pakistan) and Oil and Gas Development Company Limited.

Badhra-2 was drilled on a large surface anticline and reached a total depth of 3,495 meters. The well encountered gas shows in a number of formations and the presence of hydrocarbons was confirmed by logging.
Cased hole tests were run across two Upper Cretaceous intervals, the Parh Limestone and the Mughal Kot Sandstone. The first test, in the Parh, produced small quantities of gas. The second test, in the Mughal Kot, flowed gas at a rate of 10.4 mm cfpd with a flowing wellhead pressure of 220 psi. The flow rate was restricted by the completion equipment and it is estimated that, when completed for production, the well could be capable of producing at initial rates in excess of 20 mm cfpd. The produced gas contained no hydrogen sulphide, only minor amounts of carbon dioxide and approximately 7 % nitrogen.

A shallower geological horizon, the Pab sandstone which forms the reservoir of the Bhit field, could not be evaluated due to adverse drilling conditions. The well has now been suspended and work has commenced to develop a reservoir appraisal plan for the Mughal Kot and exploration plans for the Pab and deeper geologic horizons.
Chris Wright, Lasmo's Group Managing Director said, "We are delighted with the Badhra-2 results. The discovery is close to the Bhit field and hence should benefit from shared development infrastructure. In addition, the Mughal Kot has not previously been tested in the area and its presence as a productive reservoir further improves the exploration potential in Lasmo's Kirthar foldbelt acreage. The foldbelt is fulfilling its potential as a major hydrocarbon province and weexpect to continue our drilling program in the region later this year."

Working interests in the Kirthar Concession are:
Lasmo Oil Pakistan (Lasmo Pakistan) 47.5 %
Kirthar Pakistan 47.5 %
Oil and Gas Development Company 5.0 %
Kirthar Pakistan is a wholly-owned subsidiary of Premier Shell Pakistan.

The Government has the right to back-in for 20 % on declaration of commerciality, which is a further 15 % to the 5 % currently held by OGDCL. Lasmo Pakistan's resultant interest level will be 40 %.

In addition to its position in the Kirthar concession, Lasmo Pakistan has operated interests in four other exploration licenses and the Kadanwari production and development lease which (includes the producing Kadanwari field) as follows:

Kirthar West
Lasmo Pakistan 75.0 %
Oil and Gas Development Company 20.0 %
Government Holdings 5.0 %
The quoted interests reflect the intention of OGDCL to take a 20 % interest in the license as per the terms of the original concession award. The Government has the right to back-in for 20 % on commerciality, which is a further 15 % to the 5 % held by Government holdings. Lasmo Pakistan's resultant equity would be 63.16 %.

Pab Lasmo Pakistan 95.0 %
Government Holdings 5.0 %
The Government has the right to back-in for 15 % on commerciality, which is a further 10 % to the 5 % held by Government holdings. Lasmo's resultant equity would be 85 %.

Indus `A' and `F'
Lasmo Pakistan 95.0 %
Government Holdings 5.0 %
The Government has the right to back-in for 15 % on commerciality, which is a further 10 % to the 5 % held by Government holdings. Lasmo's resultant equity would be 85 %.

Kadanwari (Tajjal)
Lasmo Pakistan 18.42 %
Oil and Gas Development Company 50.00 %
Premier Shell Pakistan BV 15.79 %
Kuwait Petroleum 15.79 %