Oil&gas Regs Regulatory News (OGDC)

21 Dec 2006 09:13

Oil & Gas Development Company Ltd21 December 2006 December 21, 2006 OIL AND GAS DEVELOPMENT COMPANY LIMITED (OGDCL) SUBJECT: DISCOVERY / COMPLETION OF NIM WEST WELL NO. 01 By the grace of Almighty Allah OGDCL, the Joint Venture has discoveredgas in its exploratory Nim West Well No.1 (Nim E.L.). The Well is located inDistrict Hyderabad of Sindh Province. Nim West well structure was drilled down to the depth of 3490 meters, targetingto test the potentials of Lower Goru Formation of Cretaceous Age. Based ondrilling & electric log data, three Zones were selected for testing. Productiontesting of Zone-2 and Zone-3 Massive sand Lower Goru proved productive. DST ofZone # 2 was carried out and following short period initial results wereobtained: CHOKE SIZE GAS (MMSCFD) QUANTITY OF WATER (BPD) 32/64" 6.35 1360 After reviewing the results of DST of Zone # 02, the Joint Venture carried outPSP to identify the water producing intervals. Based on the results of PSP,placed Bridge plug at 3160 meters to isolate the water producing interval.Thereafter, DST was conducted in selective interval of Zone-2 and the followingparameters were obtained: CHOKE SIZE GAS (MMSCFD) QUANTITY OF WATER (BPD) 32/64" 5.337 285 After DST of Zone-2, Zone-3 was perforated and following short period initialcommingled flow results on both Zone-2 (Selective) and Zone-3 were obtained: CHOKE SIZES WHFP (PSI) QUANTITY OF GAS (MMSCFD) QUANTITY OF WATER (BPD) 32/64" 2700 6.26 285 Based on results of DST it is decided to complete the well with 2-7/8" tubingand permanent packer. The above is being provided to you in compliance with the requirements of ClauseNo. (xxiii) of the Code of Corporate Governance. -- Ends -- For further information please contact: Capital MS&L Claire Maloney +44 20 7 307 5341 / +44 0770958 479 Nicholas Bastin +44 20 7255 5117 / +44 7931 500066 About OGDCL OGDCL is the largest petroleum exploration and production, or E&P, company inthe Pakistan oil and gas sector, with a primary focus on gas. It holds thelargest portfolio of the recoverable hydrocarbon reserves of Pakistan, at 32% ofgas and 37% of oil, respectively, as of June 30, 2006, and contributed 22% ofthe country's total natural gas production and 48% of its oil production for theyear ended June 30, 2006 on a net basis1. With a portfolio of 46 exploration licences, the company has the largestexploration acreage in Pakistan, covering 39% of the total awarded acreage as ofJune 2006. While its focus to date has been on onshore exploration, the companyhas also recently begun conducting offshore exploration activities, an areawhich the company believes has significant untapped potential. OGDCL had a net profit of PKR 45.8bn for the year ended June 30, 2006 and PKR12.0bn for the three months ended September 30, 2006. 1 based on data compiled by the Directorate General of Petroleum Concessions, orDGPC This information is provided by RNS The company news service from the London Stock Exchange