KARACHI: The Oil and Gas Company Limited (OGDC) has discovered oil and gas reserves at a newly tested well in Sindh, according to a bourse filing on Monday.
"(Chhutto # 1) tested 8.66 million standard cubic feet per day of gas and 285 barrels per day of condensate," said OGDC Company Secretary Ahmed Hayat Lak said in a notification to the Pakistan Stock Exchange.
He said the new deposits were discovered by a joint venture of Nim Block comprising OGDC and Government Holdings (Pvt.).
OGDC is operator of the block located in District Hyderabad, Sindh. It has 95% shareholding in the block, while the remaining rests with Government Holdings.
"The discovery of Chhutto Well # 01 has opened a new avenue and would add to the hydrocarbon reserves base of the OGDCL and the Country," Lak added in the notification.
Topline Securities, however, termed it "a small discovery with a meagre earnings per share impact of Rs0.15-0.18."
OGDC share price decreased 1.94%, or Rs2.93, to Rs147.98 with a volume of 1.73 million shares.
OGDC manages largest reserves of hydrocarbons in the country. It recently hit an all-time high production at 50,000 barrels per day, which is almost half of the country's total oil production these days.
The state-owned firm's net profit dropped 12% to Rs30 billion for the six-month period ended December 31, 2016 on the back of lower sales value and doubling of exploration cost.
Published in The Express Tribune, March 14th, 2017.
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