Pakistan’s Oil and Gas Development Company Limited (OGDCL) has announced on Monday the discovery of new crude oil and gas reserves at Chanda oilfield in city Kohat, KPK.
OGDCL has sent a notification to Pakistan Stock Exchange (PSX) on Monday, the notification said the company has discovered new oil and gas in an exploratory well dubbed Chand X-1 situated in district Kohat of KPK.
The block is operated by OGDCL holding 72% of shares, the rest of 17.5% and 10.5% shares are held by GHPL and ZPCL respectively.
“This is the first ever discovery of crude oil and gas from Hangu formation in Chanda oil field”, according to the notification.
Samiullah Tariq, Head of Research, Arif Habib Limited said, “It will have an impact of Rs0.2 per share because the discovery is not quite significant.”
However, it will help in creating more ventures in the Oil and Gas sector of the country, the discovery is expected to yield 2.2mmcfd of gas as well as 700bbl per day, he added. OGDCL has made this discovery in a hydrocarbon-rich area of KPK which has a huge potential.
Andan Shiekh of Pak Kuwait Investment Co AVP Research said in a comment, “It’s a workover of an old well which was already flowing, the discovery is not as significant as it sounds, OGDC produces over 40,000 barrels per day and 700 barrels per days is not going to add any significant value, however, the discovery shows the filed may have the potential ahead.
OGDC has tested the well to produce 700 BPD of crude oil and 2.2 MMSCFD of gas through 32/64” choke at wellhead flowing pressure of 1150-1200 Psi from Hangu and Lumshiwal formation.
OGDC is an oil and gas exploration and development company, its exploration licenses and production leases include nearly 60 and more than 69 owned and operated joint venture ELs and D&PLs.
The company’s exploratory assets expand over 112,453 square kilometers. OGDCL shares are trading at Rs150.20 down Rs0.57 (-0.38 percent).
The notification was meant to lift up the share prices however, there wasn’t any significant response was recorded in the share prices.