OGDCL Discovers Gas, Condensate at Kunnar West

Pakistan's Oil and Gas Development Co. Limited (OGDCL) has made a gas and condensate discovery from its exploratory Kunnar West Well No. 01A. The well is located 577 meters west of Kunnar West Well No. 01.

Kunnar West No. 01A structure was delineated in Kunnar Mining Lease area, and the well was drilled down to a depth of 4065 meters. On the basis of open hole logs, two zones of Massive Sands of Lower Goru Formation were selected for testing. Production testing of Zone-1 (Massive Sands) of Lower Goru formation started on April 23, 2007, which proved productive.

The short duration initial testing results are as follows:

--Choke size: 32/64"
--WHFP (psi): 2,480
--Q condensate (bpd): 170
--Q gas (MMSCFD): 11.02
--Q water (BWPD): 20
--API gravity: 44

OGDCL is the largest petroleum exploration and production, or E&P, company in the Pakistan oil and gas sector, with a primary focus on gas. It holds the largest portfolio of the recoverable hydrocarbon reserves of Pakistan, at 32% of gas and 37% of oil, respectively, as of June 30, 2006, and contributed 22% of the country's total natural gas production and 48% of its oil production for the year ended June 30, 2006 on a net basis.

With a portfolio of 46 exploration licenses, the company has the largest exploration acreage in Pakistan, covering 39% of the total awarded as of June 2006. While its focus to date has been on onshore exploration, the company has also recently begun conducting offshore exploration activities, an area that the company believes has significant untapped potential.

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