Gas and Condensate Discovery

25 Apr 2007 09:30

Oil & Gas Development Company Ltd25 April 2007 25 April 2007 OIL AND GAS DEVELOPMENT COMPANY LIMITED (OGDCL) GAS AND CONDENSATE DISCOVERY AT KUNNAR WEST WELL NO. 01A (EXPLORATORY) - KUNNAR MINING LEASE Oil and Gas Development Company Limited (OGDCL) announces today that it has madea Gas and Condensate discovery from its Exploratory Well Kunnar West Well No.01A. The well is located at a distance of 577 meters in the west of Kunnar WestWell No. 01. Kunnar West No. 01A structure was delineated in Kunnar Mining Lease area and thewell was drilled down to a depth of 4065 meters. On the basis of open holelogs, two zones of Massive Sands of Lower Goru Formation were selected fortesting. Production testing of Zone-1 (Massive Sands) of Lower Goru formationstarted on April 23, 2007, which proved productive. The short duration initial testing results are as under: CHOKE SIZES WHFP (PSI) Q Condensate Q Gas (MMSCFD) Q water API GRAVITY (BPD) (BWPD) 32/64" 2480 170 11.02 20 44 The potential of additional Zone-2 (Massive Sand) of Lower Goru formation in thewell will be tested shortly. -- Ends -- For further information please contact: Capital MS&LAnnabel 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, or DGPC This information is provided by RNS The company news service from the London Stock Exchange