OGDCL Hits Gas, Condensate Pay in Punjab

Oil and Gas Development Co. Limited (OGDCL) has made a gas and condensate discovery at its exploratory well Dakhni Deep No. 1 in the Datta formation, located in the Dakhti Mining Lease in the Attock district of Punjab province, Pakistan. The surface coordinates of the well are 33 degrees -23’-42.283" (latitude) & 71 degrees-53’-12.298" (longitude).

The well was spudded-in on May 12, 2006, and drilled to a depth of 4,828 meters, targeting to test the potentials of the Kingriali, Datta, Shinwari, Samanasuk & Lumshiwal formations. OGDCL added that the Kingriali, Datta & Shinwari formations had never been tested earlier in the Dakhni Mining Lease.

The well testing began on March 10, 2007. During testing, Kingriali, Shinwari & Lumshiwal were proved as non-producing horizons; however, the Datta formation proved to be hydrocarbon-bearing.

After completing the well in the Datta formation on April 14, 2007, acid stimulation was carried out on last Friday. The post stimulation results are as follows:

--Choke sizes: 32/64"
--WHFP (psi): 2,100
--Q condensate (bpd): 260
--Q gas (MMSCFD): 10.8
--Q water (bpd): 40
--API: 45.5
--Gas CV (Btu/scf): 1,048

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 (based on data compiled by the Directorate General of Petroleum Concessions).

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 of PKR 45.8bn for the year ended June 30, 2006 and PKR 12.0bn for the three months ended September 30, 2006.