ENERGY DEPARTMENT

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455. PUC is a letter dated 10-1-2023 pertains to TIGHT GAS CERTIFICATION carried out on well

RIZQ-4.

456. RIZQ-4 well is located in the RIZQ D&P Lease, Sindh/Baluchistan Province of Pakistan. . This

reservoir was earlier designated as tight gas reservoir for previous wells drilled in this field.

457. The Tight Gas Policy requires that each well, to be considered a Tight Gas well, and its reservoir to

be designated as Tight Gas Reservoir (TGR) and to claim the incentives, has to be certified for the

same by a third party consultant.

458. The section 4 of the Tight Gas Policy 2011 lays down the criteria for a well to be considered as a

candidate for the incentives provided in the policy. Under Section 4(i) and (ii); the company has to

demonstrate to the satisfaction of the Federal and Provincial Government concerned that the well

cannot flow naturally at commercial rates with the conventional methods despite having hydrocarbon

reserves and that advanced production technologies acceptable to the regulator to exploit these

reserves. Section 4(iii) requires that the effective permeability of the reservoir under consideration

should be less than 1.0 milli Darcy (mD).

459. PGNiG adhering to the procedures lay down in the section 5 of the said policy for acquiring the

certification for tight gas from third party.

460. PGNiG appointed M/s RPS Energy as a third party consultant as mentioned in the section 6 of the

said policy.

461. The M/s RPS Energy consultant was communicated all the relevant data for the study of the well

reservoir by PGNiG, and the third party consultant formulated its report based in the finding of their

study.

462. According to the submitted report, Well Logs and Core data was used to analyzing porosity and

permeability. Whereas Drill Stem Testing (DST) data was employed to calculate the flow rates and

effective permeability and economics for the well.

463. Results computed by consultant for RIZQ-4 within Pab Reserviors are; the results of horizontal plug

permeability from the core data indicated that it has a geometric mean permeability (CKH) value of
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NOTE SHEET
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0.24mD while in the vertical plug samples the geometric mean permeability (CKH) value of

0.397mD (Table 4.2, page#10 of the report). DST results indicate similar behavior of the reservoir

with pre-frac permeability from core amounting to 0.24mD (Table 5.1, page#16 of the report).

Permeability measured by these methods confirms it is less than 1mD.

464. Consultant is also satisfied on the basis of data transmitted to it that the RIZQ-4 well cannot produce

economical volumes of hydrocarbon naturally, and thus require use of advance technologies(such as

hydraulic fracturing and others) for production of economics volumes of hydrocarbons from the well.

The consultant’ for the purpose of this evaluation seems to have employed usual industry practice

and techniques.

465. The effective permeability values are certified by M/s RPS Energy consultant to be less than the limit

set out by the governing policy.

466. In consultation with geophysicist and in the light of Para -463/n, 464/ and 465/n, it is safe to say that

RIZQ-4 has encountered tight gas which has also been certified by third party consultant M/s RPS

Energy. Therefore its report and certificate may be approved.

467. Para 466/n is submitted for your consideration.

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ASST. DIRECTOR (I)

468. S.O(O&G)
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