OGDCL Announces SE Pakistan Discovery

Oil and Gas Development Co. Ltd. (OGDCL) said that it has discovered hydrocarbons in the exploratory Thora Deep Well No. 1, which is located in the Thora and Thora East Mining Lease in the Hyderabad district of Pakistan's Sindh province. The well was drilled down to the depth of 3,906 meters.

On the basis of open-hole logs, two zones of massive sands of the Lower Goru formation were selected for testing. Tests of both zones showed the second zone as the producing zone. The short-duration initial testing results are as follows:

--Choke sizes: 32/64"
--WHFP (psi): 1,880
--Quantity condensate (bpd): 100
--Quantity gas (MMSCFD): 9.90
--Quantity water (bwpd): 120
--API gravity: 44.9

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.

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.