Karachi: Mari Energies Limited (MARI) convened a corporate briefing session to discuss its financial results for the fiscal year 2026 and outline its future strategic initiatives. Key areas of focus included ongoing exploration activities, offshore seismic surveys, advancements in field development, and enhancements to the company's reserves.
According to JS Global, MARI's management highlighted progress on multiple fronts, with drilling activities currently underway at Ghauri East-1 and Rahi X-1. Seismic acquisition is progressing at sites including Karak, Kohat, Harnai, and Ziarat. The company plans to initiate an offshore seismic survey in November 2026, with the first well in Indus Block-C anticipated in early fiscal year 2027-28. The costs associated with offshore seismic activities are projected to be lower than onshore, estimated at $15-20,000 per linear kilometer.
In addition, MARI is advancing drilling operations at the Mari Field, with facilities under development at the Sujawal and Shah Bandar fields. These fields are expected to offer production potentials of approximately 20 million cubic feet per day (mmcfd) and 30 mmcfd, respectively. The planning phase is underway for the Pateji-2 site.
The fiscal year 2026 saw MARI drill eight exploration and appraisal wells, leading to two new discoveries. Notably, the Shams-1 well transitioned from spud-in to production within months, delivering 48 mmcfd of gas and 64 barrels of oil per day (bopd) with a higher heating value than previously produced in the Mari D&PL.
In the Waziristan Block, Spinwam-1 and Shewa were commissioned and integrated, with a combined production potential of around 40 mmcfd and 250 bopd. The full development plan for this block aims to further enhance production levels.
The Ghazij field is now fully developed, providing a secure gas supply for the fertilizer sector for the next decade, contingent on increased fertilizer production capacity. Additionally, a 36-year renewal of the Mari D&P Lease has been approved by the Federal Government, extending it to 2065.
MARI's reserves have seen substantial growth, with 2P+2C reserves climbing to 1,029 million barrels of oil equivalent (mmboe) from 642 mmboe over the past five years. The reserve replacement ratio stands at 375%, with a reserves-to-production ratio of 21 years. The company's finding cost significantly decreased to $1.3 per barrel of oil equivalent (boe) in FY26, down from $12.8/boe in FY20, with a target of reducing it further to $1.0/boe.
The company has also entered into a joint venture with Ghani for a greenhouse gas emission project, with financing secured from HBL and commissioning expected by July 2027.
A notable financial highlight includes a tax reversal booked in the fourth quarter of FY26, amounting to Rs18.3 billion, contributing to a total annual reversal of Rs3.8 billion. MARI management does not anticipate further reversals in the near term.
MARI maintains a hold stance with shares currently trading at an estimated price-to-earnings ratio of 8.4x for fiscal year 2027.