Farming-out Indus Offshore

12 Feb 2007 12:07

Oil & Gas Development Company Ltd12 February 2007 February 12, 2007 OIL AND GAS DEVELOPMENT COMPANY LIMITED Subject: DISSEMINATION OF MATERIAL INFORMATION - FARMING-OUT INDUS OFFSHORE BLOCK-G We are pleased to inform you that for undertaking exploration activities in theblock Oil and Gas Development Company Limited (OGDCL) has farmed out 50% workinginterest in Block No. 2265-1 (Offshore Indus-G) to Brazil's Petrobras Oil & GasB.V. (PO&G). The block comprises an area of 7466 sq.km and is presently 100%held by OGDCL. Petrobras is a leading exploration and production company of the world and is amajor player in offshore exploration with proven expertise in offshore drilling.The company is also engaged in research and refining of crude oil and itsby-products. The company is presently working in 23 countries and currentlyholds 97 production platforms producing more than 2.0 million barrels of oilequivalent with reserves of 11.77 billion barrels of oil and gas equivalent. Thecompany is associated with 71 oil companies and is the operator of 170 of the357 blocks it participated in. OGDCL is the largest public limited company of Pakistan engaged in Exploration &Production activities in the country for the last four decades. Presently, OGDCLis 100% owner in twenty-seven (27) exploration blocks. In addition, it is theoperator as well as working interest owner in thirteen (13) exploration blocksand partner in another six (6) exploration blocks operated by other exploration& production companies. OGDC has 39 Mining and Development & Production Leaseswhich are operated by OGDCL and is partner in 33 non-operated Mining andDevelopment & Production Leases. The above is being forwarded to you in compliance with the requirement of ClauseNo. (xxiii) of the code of Corporate Governance. -- Ends -- For further information please contact: Capital MS&LClaire Maloney +44 20 7 307 5341 / +44 0770958 479 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