Farming-in in Guddu block

26 Feb 2007 10:11

Oil & Gas Development Company Ltd26 February 2007 February 26, 2007 OIL AND GAS DEVELOPMENT COMPANY LIMITED Subject: FARMING-IN IN GUDDU BLOCK Oil & Gas Development Company Limited (OGDCL) is pleased to announce theacquisition of 70% Working Interest along with operatorship in Guddu Block fromIPR Transoil Corporation (IPRTOC). The Guddu Block covers an area of 2093.4 sq.kms over the Sindh and Punjab provinces of Pakistan. The Block lies in theMiddle Indus Basin within the largest gas producing fields of Pakistan i.e. Sui,Qadirpur, and Mari. The Joint Venture of OGDCL, IPRTOC and Government HoldingsPrivate Limited (5% carried) is committed to drill an exploratory well in thesaid block during the current calendar year. OGDCL is a public limited company engaged in Exploration & Production activitiesin the country for the last four decades. OGDCL holds the largest share of oil(48%) & gas (35%) of the total reserves in the country. Its percentage share oftotal oil & gas production in Pakistan is 48% and 22% respectively. Presently,OGDCL is 100% owner in twenty seven (27) exploration licences. In addition, itis the operator as well as working interest owner in thirteen (13) explorationlicences and partner in another six (6) exploration licences operated by otherexploration & production companies. OGDCL has 39 Mining and Development &Production Leases, which are operated by OGDCL and is partner in 31 non-operatedMining and Development & Production Leases. IPRTOC is a multinational US based Company in Dallas, USA. IPRTOC is currentlyoperating in Egypt, USA/Mexico and Pakistan. The company has built insignificant acquisitions including the Alamein Concession in Egypt's WesternDesert, which consisted of a major shipping terminal and pipelineinfrastructure. -- Ends -- For further information please contact: Capital MS&L Annabel Forbes +44 20 7 307 5347 / +44 07786 657455 Nicholas 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