OGDCL Announces Guddu Farm-in

Oil & Gas Development Company Limited (OGDCL) has acquired 70% Working Interest along with operatorship in Guddu Block from IPR Transoil Corporation (IPRTOC).

The Guddu Block covers an area of 2093.4 sq. km over the Sindh and Punjab provinces of Pakistan. The Block lies in the Middle Indus Basin within the largest gas producing fields of Pakistan--Sui, Qadirpur, and Mari. The Joint Venture of OGDCL, IPRTOC and Government Holdings Private Limited (5% carried) is committed to drill an exploratory well in the said block during the current calendar year.

OGDCL is a public limited company engaged in Exploration & Production activities in the country for the last four decades. OGDCL holds the largest share of oil (48%) & gas (35%) of the total reserves in the country. Its percentage share of total oil & gas production in Pakistan is 48% and 22%, respectively. Presently, OGDCL is 100% owner in 27 exploration licenses. In addition, it is the operator as well as working interest owner in 13 exploration licenses and partner in another six exploration licenses operated by other exploration & production companies. OGDCL has 39 Mining and Development & Production Leases, which are operated by OGDCL and is partner in 31 non-operated Mining and Development & Production Leases.

IPRTOC is a multinational US based Company in Dallas, Texas. IPRTOC is currently operating in Egypt, USA/Mexico and Pakistan. The company has built in significant acquisitions including the Alamein Concession in Egypt's Western Desert, which consisted of a major shipping terminal and pipeline infrastructure.

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.