Gas and condensate discovery

18 Apr 2007 09:26

Oil & Gas Development Company Ltd18 April 2007 April 18, 2007 OIL AND GAS DEVELOPMENT COMPANY LIMITED (OGDCL) GAS & CONDENSATE DISCOVERY AT CHAK 66 NORTH EAST WELL NO. 1 (EXPLORATION) - SINGHORO BLOCK, DISTRICT SANGHAR - SINDH Oil and Gas Development Company (OGDCL) has discovered Gas & Condensate from itsChak 66 North East Exploratory Well No. 1. The Well is located in SinjhoroBlock in District Sanghar of Sindh Province. The Sinjhoro Block is held by ajoint venture comprising Oil & Gas Development Company Limited (Operator),Orient Petroleum Limited International Inc., and Government Holdings (Pvt.)Limited having 76%, 19% and 5% (carried) pre-commercial working interestrespectively. Chak 66 North East Well No. 1 was drilled down to its Target Depth 3435 metres.Based on electric logs, geological & drilling data the production testing wasstarted on 16th April 2007. Initial short duration test of 41 meters intervalon 1/2" choke size has produced condensate having an API gravity of 50.56o andgas at a wellhead flowing pressure of 1400 Psi. The short duration preliminarytesting results are as under: CHOKE SIZE GAS (MMSCFD) QUANTITY OF WATER (BWPD) QUANTITY OF CONDENSATE (BCPD) 32/64" 4.14 38 1600 Build up is in progress, one more zone is yet to be tested. 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 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