MGCL is a major player in Pakistan’s E&P sector. Its business strategy is focused on pursuit of growth on sustainable basis. Thus the fundamental constituents of its business strategy are uninterrupted gas supplies to its customers, optimized utilization of its resources, building on value of its exploration portfolio, alignment of technical and financial resources with its strategic business plan and maintaining high HSEQ standards to ensure safe, reliable and healthy environment for the people and the communities it works with.

Appraisal / Development Plans

The Company’s ongoing Extended Well Test (EWT) of its gas discovery in Sukkur block is expected to be completed during year 2012; followed by its possible appraisal and/or development program. Similarly in Sujawal and Karak Blocks arrangement are underway to commence EWT of its recent discoveries in “Sujawal- X1” and Halini-X1 wells. The Company’s investment plan for year 2011-12 also includes commencement of development work on its Zarghun South (ZS) gas/condensate project in Baluchistan which would cost around US$60 million and bring on stream 20MMscfd gas for transmission to the provincial capital; Quetta.

 Exploration Plan

The Company remains committed to exploration-led business growth; focusing particularly on exploration in areas that provide access to lower risk, more predictable sources of production and early cash flows. The Company’s exploration segment has plans to acquire extensive seismic data in Harnai, additional seismic in Ziarat, and Sukkur blocks and drilling of two exploration/appraisal wells in Karak and Ziarat blocks. The Company will also continue its scouting for possible new opportunities both locally and internationally to expand its exploration portfolio.

Future Challenges

With the traditional sources of fossil fuels becoming harder to reach and more expensive to harness the Company is well cognizant of the challenges it is going to face in executing its exploration and development strategies.

In order to materialize its progressive exploration & development plans; MGCL has recently added a new dimension to its growth strategy by acquiring a state of the art 1500 HP drilling rig equipped with VDF mechanism. Company’s rich experience in the E&P sector, technical expertise and other professional support form the core of its drilling operations. Placed in the highly competitive market, our drilling unit has successfully leveraged its resources to ensure high performance drilling for both MGCL as well as for other E&P companies operating in the Country.

In line with international best practices MGCL is in the process of setting up a dynamic R&D centre with an outlook to meet the challenges faced by the Country’s energy sector in general and by the petroleum sector in particular.

The Company has thus earmarked substantial resources with a commitment to develop its R&D capabilities in pursuit of technologies which would realize the full potential of our oil and gas business. As part of our research MGCL shall be working on potential game-changing technology focused on technical skills and technology around exploration, unconventional resources, enhanced oil recovery and new project execution methodologies to meet its long-term goals. This is planned to be accomplished through research partnerships, as well as traditional relationships with leading companies, joint industry projects, service providers and the leading academic institutions.

Integrating results from these research efforts with MGCL’s strengths in conventional analysis and field development would allow the Company to develop unconventional assets in a more economically efficient manner.