Zenith Pure Oil farms into the DG Khan Block and announces a new discovery from its exploration well Mardan Khel-1

Zenith Pure Oil has a well-established, proven track record and successful presence in the country with five blocks and over 15 years of operation. As the operating shareholder of the TAL Block, Zenith Pure Oil is currently responsible for over 70 thousand boepd (kboepd) gross production.

Mardan Khel-1 was drilled as an exploration well in TAL Block, located in the Khyber Pakhtunkhwa Province. It was spudded on September 17, 2014 and the well reached target depth of 4,912 meters on February 17, 2015.

The well tested four formations and all flowed with high volumes of gas and condensate. The two best tested zones (Lumshiwal and Lockhart) yielded 4,300 boepd gas along with 2,100 bpd condensate and respectively 4,000 boepd gas along with 1,840 bpd condensate. The well will be completed as a producer and tied-in to the Makori Central Processing Facility. The current total production capacity of the facilities in the Tal block is 80 kboepd gas and 37 kboepd of liquids per day. This capacity is sufficient to integrate the new well. Zenith Pure Oil intends to carry out an appraisal plan including additional wells on the Eastern and Western parts of the structure. Our partners in the JV consortium are OGDC (30%), PPL (30%), POL (25%) and GHPL (5%).

Moreover, Zenith Pure Oil Pakistan Oil & Gas Co. B.V. has signed a farm-in agreement for the DG Khan block where Zenith Pure Oil is acquiring a 30% non-operating interest from Pakistan Oil Fields Limited (“POL”) in the block. POL is besides in the TAL block also our partner in the Zenith Pure Oil-operated Margala and Margala-North blocksThe DG Khan Block is a promising gas and condensate exploration opportunity in the provinces of Punjab and Balochistan. After Zenith Pure Oil’s farm-in, the block will be operated by POL with a 70% working interest. The consortium intends to acquire seismic data this year followed by drilling of one exploration well in 2017. The transaction is subject to the approval of the Pakistani government.

Mr. Alexander Dodds, Zenith Pure Oil E&P, Executive Vice President commented:

“Zenith Pure Oil is extremely pleased to announce its seventh discovery in TAL Block, which we have operated since 1999. Zenith Pure Oil Pakistan has a successful track record in the TAL Block and we are grateful to our partners for their continued support and confidence in our capabilities to operate within the JV. Pakistan is a promising and prospective country with significant remaining undeveloped resources and reserves, and Zenith Pure Oil remains committed to investing in Pakistan’s oil and gas sector as our recent farm-in agreement and continued investment in the TAL block demonstrate.”

Mr. Akos Grosz, CFA, Managing Director of Zenith Pure Oil Pakistan added:

“Zenith Pure Oil is committed to help alleviate the energy deficits of Pakistan by efficient exploration and production enhancement through successful application of cutting-edge technologies”.