KARACHI: The Oil and Gas Development Company Limited (OGDCL) has found new deposits of oil and gas in Khyber-Pakhtunkhwa, according to a bourse filing on Friday.
OGDCL, the operator of the joint venture in Baratai Block in the province with 97.5% stake, has drilled down to a depth of 5,014 meters in the exploratory Dhok Hussain well # 01 and tested hydrocarbons. Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) holds the remaining 2.5% stake in the joint venture.
“The well has tested 15.40 mmscfd (million standard cubic feet per day) of gas and 360 barrels per day of condensate (crude oil),” Company Secretary Ahmed Hayat Lak said in a notification to the Pakistan Stock Exchange (PSX).
OGDCL’s share price inched down 0.02%, or Rs0.04, to Rs162.79 with a volume of 1.21 million shares at the PSX on Friday.
The structure of the well was drilled and tested using OGDCL’s in-house expertise, the operator stated.
“The discovery of Dhok Hussain well # 01 is the result of an aggressive exploration strategy adopted by the company. It has opened new avenues and would add to the hydrocarbon reserves base of OGDC and the country,” he said.
Domestic production meets some 30% of the demand for oil and around 70% for gas in the country. The rest is met through imports.
OGDCL remains the country’s largest oil and gas exploration firm. “The new discovery would add Rs0.33 per share to the company’s bottom-line (net profit) on an annualised basis, assuming oil price remains at $55 per barrel and rupee-dollar parity at Rs110 for US dollar,” Taurus Securities said in a note to clients.
Published in The Express Tribune, December 30th, 2017.