Karachi: Pakistan's oil and gas reserves have seen a notable increase, with oil reserves rising by 9% and gas reserves by 10%, according to recent data. The increase is attributed to new discoveries and additions from fields such as Baragzai, which significantly contributed to the oil reserves, and Mari Ghazij, which led to the increase in gas reserves.

According to JS Global, as of June 26, the remaining recoverable oil reserves in Pakistan have reached 276 million barrels, up from 253 million barrels in December 2025. The Baragzai field alone added 29 million barrels of oil reserves, while other fields like Spinwam, Makori East, Dhok-Sultan 3, and Mamikhel South contributed smaller amounts. The total oil production over the past six months was 12 million barrels, resulting in a reserve replacement ratio of approximately 2.9x.

Similarly, the remaining recoverable gas reserves increased to 20,664 billion cubic feet (BCF), compared to 18,854 BCF in December 2025. This growth in gas reserves was driven by additions from several fields, including Mari Ghazij, Spinwam, and Hatim. The reserve replacement ratio for gas during this period was 1.5x.

The valuation impact of these reserve additions on exploration and production companies was calculated using a reserves-based discounted methodology. The monetization of these reserves into actual earnings is expected to take time, as many of the reserves are from fields that are already producing hydrocarbons and have a considerable remaining life. The theoretical valuation impact per share was estimated at Rs98-117 for MARI, Rs12-14 for PPL, Rs14-17 for OGDC, and Rs9-11 for POL. However, a material increase in value is not anticipated based on price-to-earnings valuation, as the fields are already in production.