- Jura Energy (TSX:JEC) begins production at Badin IV South
- The company will sell conventional natural gas to Sui Southern Gas Company and natural gas liquids directly to refineries
- Production of CNG at 22 million cubic feet per day
- Production of natural gas liquids at 174 barrels per day
- JEC shares were up 4.17 per cent and traded at C$0.13 per share
Pakistani-focused gas company Jura Energy (TSX:JEC) has informed that market that it has started production at its Badin IV South leases last week.
Located in Sindh province, the leases are comprised of the Ayesha, Aminah and Ayesha North wells.
Current production of conventional natural gas (CNG) from Badin IV South is registered at 22 million cubic feet per day, and 174 barrels per day of natural gas liquids (NGL). The latter has a yield of about 7.9 barrels per million cubic feet.
The company will sell CNG to the Sui Southern Gas Company while NGLs will be sold directly to refineries in Pakistan.
Jura Energy (TSX:JEC) said prices are determined by prescribed formulas under the Pakistan Exploration and Production Policy 2012. It is based on the carriage and freight price of a basket of crude oil imported into the country.
Under this pricing regime and the ‘basket’ price of C$70.17 (US$53) per barrel, the company expects to price CNG at C$6.01 (US$4.54) per million British Thermal Units and NGLs at C$64.14 (US$48.45) per barrel.
The company holds a 27.5 per cent interest in the Badin IV South block, which is operated by Petroleum Exploration (Private) Limited, which has a 47.5 per cent stake.
Jura Energy shares were up 4.17 per cent and traded at C$0.13 per share.