LAHORE: Oil and Gas Development Company Limited (OGDCL) on Monday announced the discovery of crude oil and gas at Chanda oilfield situated in Kohat, Khyber Pakhtunkhwa.
In a notification sent to the Pakistan Stock Exchange (PSX) on Monday, OGDCL said it discovered oil and gas in an exploratory well named Chand X-1 located in district Kohat, Khyber Pakhtunkhwa.
The block is operated by OGDC with 72 percent shareholding along with 17.5 percent and 10.5 percent share of GHPL and ZPCL respectively.
“This is the first discovery of crude oil and gas from Hangu formation in Chanda oil field,” said the notification.
In a comment to Profit, Maha Jafer Butt Director Research Capital Stake said, “The well is already functional and adding to the company’s bottom line.
This addition is not expected to have a huge impact but it does draw attention to the potential existing in the area.”
Head of Research, Arif Habib Limited Samiullah Tariq while speaking to Profit about the oil discovery said: “It will have an impact of Rs0.2 per share, although the discovery isn’t very significant.
It will help in furling more ventures in the country’s oil and gas sector and the discovery size is expected to be 2.2mmcfd of gas and 700bbl per day.”
He added “The discovery has been made in a hydrocarbon-rich area of Khyber Pakhtunkhwa, which has immense potential.
In a comment to Profit, Adnan Sheikh Pak Kuwait Investment Co AVP Research said, “It’s a workover of an old well that was already flowing, the discovery is insignificant considering OGDC produces over 40000 barrels per day, however, this shows the field may still have potential produces.”
The notification added “The structure of Chanda Well number 1 was tested during workover (re-completion) using OGDCL’s in-house expertise and in close collaboration with the teams of GHPL & ZPCL.
The well has tested 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.“
OGDCL stated in December 1999, “Lumshiwal was tested only 150 bpd of crude oil and 0.86 mmcfd of gas through 32/64” choke at well-head flowing pressure of 160-190 Psi and the additional contribution of 550BOPD and 1.34MMSCFD gas is from Hangu Formation which has been tested for the first time in Chanda structure. The well has been completed to take comingle production from Lumshiwal and Hangu formations.”
OGDCL is an exploration and production company and is engaged in the exploration, development and production of hydrocarbon products.
Its exploration licenses (ELs), and development and production leases (D&PLs) include approximately 60, and over 69 owned and operated joint venture ELs and D&PLs. Its exploratory assets cover an area of approximately 112,453 square kilometres.
OGDCL shares were trading at Rs150.20, down Rs0.57 (-0.38 percent). KSE-10 index was trading at 40,541.67 points, down 313.10 points (-0.17 percent) at the time of filing this report.
