OGDCL Hits Gas Pay in Pakistan

Oil and Gas Development Company (OGDCL) on Thursday announced the discovery of gas in its Dhachrapur exploratory Well No.1 falling in Tando Alam (M.L). The well is located at a distance of 0.87 kilometers in the South of the Tando Alam Well No. 14.

Dhachrapur well No. 01 was drilled down to the depth of 3495 meters. Based on drilling & electric log data, two zones were selected for testing. Production testing of Zone-1 (massive-Sands) of Lower Goru Sand member started on April 16, 2007, which proved productive. The short duration initial testing results at a wellhead flowing pressure of 2400 Psi are as under:

--Choke size: 28/64"
--Gas (MMSCFD): 9.25
--Quantity of water (BWPD): 140

The potential of additional Zone-2 of Lower Goru Formation in the well will be tested shortly.

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 basis1. 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 which the company believes has significant untapped potential.

OGDCL had a net profit PKR 45.8bn for the year ended June 30, 2006 and PKR 12.0bn for the three months ended September 30, 2006.