Discovery of hydrocarbon

19 Apr 2007 10:07

Oil & Gas Development Company Ltd19 April 2007 OIL AND GAS DEVELOPMENT COMPANY LIMITED (OGDCL) DISCOVERY OF HYDROCARBON IN DHACHRAPUR WELL NO. 01 (EXPLORATORY) Oil and Gas Development Company (OGDCL) announces the discovery of gas in itsDhachrapur exploratory Well No.1 falling in Tando Alam (M.L). The well islocated 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 ondrilling & electric log data, two zones were selected for testing. Productiontesting 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 awellhead flowing pressure of 2400 Psi are as under: CHOKE SIZE GAS (MMSCFD) QUANTITY OF WATER (BWPD)28/64" 9.25 140 The potential of additional Zone-2 of Lower Goru Formation in the well will betested shortly. 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 Annabel Forbes +44 20 7 307 5347 / +44 07786 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 basis1. 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, orDGPC This information is provided by RNS The company news service from the London Stock Exchange