DISCOVERY OF HYDROCARBON

23 May 2007 10:30

Oil & Gas Development Company Ltd23 May 2007 23 May 2007 DISCOVERY OF HYDROCARBON IN THORA DEEP WELL NO. 01 (EXPLORATORY) The well was drilled down to the depth of 3906 meters in Thora & Thora EastMining Lease falling in District Hyderabad of Sindh Province. On the basis ofopen hole logs, two zones of Massive Sands of Lower Goru formation wereselected for testing. Both the zones were tested, out of which the second zoneproved as producing zone. The short duration initial testing results are asunder: CHOKE WHFP Quantity Quantity Gas Quantity API SIZES (PSI) Condensate (MMSCFD) water GRAVITY (BPD) (BWPD) 32/64" 1880 100 9.90 120 44.9 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&LAnnabel Forbes +44 20 7 307 5347 /+44 7786 657455Nicholas Bastin +44 20 7255 5117 / +44 7931 500066 Overview 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 basis(1). With a portfolio of 46 exploration licences, the company has the largestexploration acreage in Pakistan, covering 39% of the total awarded as of June2006. While its focus to date has been on onshore exploration, the company hasalso recently begun conducting offshore exploration activities, an area whichthe company believes has significant untapped potential. OGDCL had a net profit 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, or DGPC This information is provided by RNS The company news service from the London Stock Exchange