Zarghun field is located in the Baluchistan province of Pakistan approximately 52

km north-east of Quetta city in Harnai district. The field shares are divided
between four joint venture partners with SPUD Energy 40%, MPCL with 35%,
GHPL having 17.5 % share while PKP have shares 0f 8.5 %.

Zarghun south block was awarded on 30th November 1994. The shares of initial
owners of the block include 5% by government 47.5% by premier exploration and
47.5% by NOVUS. It was a joint venture. During first phase a 201 km 2D seismic
exploration was done on ZS-1 in 1998 for gas discovery after taking lease survey
was extended to 86 km and a discovery well was developed. In second phase
there were two appraisal wells were drilled that is Zarghun South 2 (Gas
Discovery) and Zarghun North 1 (Plugged abandoned). ZS-1 was undergone
workover in 2013, and completed by Chilton Limestone and Mughal Coat
Limestone, it was a conventional reservoir. Whereas Zarghun South 2 was
completed by Dunghan limestone it was a tight reservoir. Initially overall field had
negative economics, so tight gas policy was introduced according to this policy if a
reservoir have a permeability less than 1 millidarcy it will be given an incremental
price. Degollyer Magnaughan certified Dunghan limestone as a tight reservoir.

In 2016 ZS-3 was drilled as a development well. It was a horizontal well and was
completed by dunghan limestone.