KARACHI: Oil and Gas Development Company Limited (OGDCL) has made a second discovery of oil and gas deposits at the Baratai Block in Khyber-Pakhtunkhwa (K-P), stated a stock exchange notice sent on Tuesday.
The state-owned firm, which remains the single largest oil exploration company listed at the Pakistan Stock Exchange (PSX), said in a notification to the bourse that it has tested 13.56 million standard cubic feet per day (mmscfd) of gas and 317 barrels per day (bpd) of condensate (crude oil) at a zone in Lockhart formation in the last week of December.
OGDCL’s share price increased 1.31% or Rs2.25 to close at Rs173.84 with 1.77 million shares changing hands at the PSX.
Earlier in mid-December, OGDCL – the operator of the joint venture of Baratai Block in the province with 97.5% stake – drilled the exploratory well Dhok Hussain well #01 to the depth of 5,014 meters and tested hydrocarbons.
“The well has tested 15.40mmscfd of gas and 360 barrels per day of condensate,” Company Secretary Zafar Ahmad said in the notification. Khyber Pakhunkhwa Oil and Gas Company Limited (KPOGCL) holds the remaining 2.5% stake in the joint venture.
The structure of the well was drilled and tested using OGDCL’s in-house expertise, the operator underlined.
“The discovery of Dhok Hussain well #01 is a result of 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 around 30% needs for oil and around 70% for gas in the country. The rest is met through imports.
Taurus Securities said in a post-discovery note that on the additional flows mentioned, the company will have a positive annualised impact of Rs0.29 per share assuming $55 barrels per day oil price and Pakistani currency at Rs110 for the US dollar.
On a cumulative basis, annualised impact from Dhok Hussian works out to be Rs0.61 per share, which is 4.1% of earnings per share in the fiscal year 2017, it said.
Published in The Express Tribune, January 24th, 2018.