A pocket of underground gas was discovered during water exploration activities at a development site near Korangi Creek, according to a disclosure filed with the Pakistan Stock Exchange.

The company, which was conducting a preliminary site investigation, encountered the gas while drilling a test well for water exploration. Initial technical evaluations suggest the gas may be shallow biogenic methane, a naturally occurring gas that results from the decomposition of organic material.

“Since this area is not part of a known natural gas reservoir, and based on similar occurrences elsewhere, this gas pocket is expected to dissipate naturally over time provided the flame is allowed to burn,” the company stated in its filing.

The water exploration test was part of a series of extensive studies conducted over the past two years, which included geotechnical studies, soil composition and contamination tests, Electrical Resistivity surveys, and a comprehensive Environmental and Social Impact Assessment.

The company emphasized that all field investigations were conducted with necessary approvals from relevant authorities and in compliance with regulatory standards. Since the incident occurred on Friday, March 28, the company has implemented measures to contain the situation and has kept stakeholders informed through press releases.

“We remain committed to maintaining highest standards of transparency, safety, health, and sustainability in all our projects,” said the notice.

The company has not provided details about any potential impact on its development plans or timeline for the Korangi Creek project.