Oil & Gas Development Company Limited (OGDCL) announced the discovery of gas condensate from the Lockhart Formation at Razgir-1 Exploratory Well, located in District Kohat, Khyber Pakhtunkhwa.
The oil and gas giant shared this development with the Pakistan Stock Exchange (PSX) through a notice on Monday in compliance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of PSX Regulations.
The TAL Joint Venture comprises Oil and Gas Development Company Limited (OGDCL) with 30% working interest, MOL Pakistan Oil & Gas Co. B.V. (the Operator) with 10%, Pakistan Petroleum Limited (PPL) with 30%, Pakistan Oilfields Limited (POL) with 25%, and Government Holdings Private Limited (GHPL) with 5% working interest.
The company said that the well was spudded-in on January 09, 2024, and has been successfully drilled to a depth of 3773.98m TVD. Based on the interpretation of wireline logs data, the Lockhart Formation (Exploratory Target) was successfully tested (Post Acid Stimulation) at a rate of around 17.9 Million Standard Cubic Feet per Day (MMSCFD) gas and 153 Barrels per Day (BPD) of condensate at choke size 40/64″ at Wellhead Flowing Pressure (WHFP) of 2017 Pounds per Square Inch (Psi).
“Referring to the information previously disclosed to the PSX on August 06, 2024, the cumulative production from Lumshiwal, Kawagarh, and Lockhart Formations at Razgir-1 Exploratory Well has now reached 54.3 MMSCFD of gas and 562 BPD of condensate,” read the notice.
OGDCL said that it was working closely with MOL Pakistan Oil & Gas Co. B.V. for early monetization of the Razgir Well 1 discovery.
The recent discoveries in the TAL Block have mitigated risks associated with further exploration, thereby unlocking new opportunities for upside potential. These discoveries are poised to boost Pakistan’s indigenous hydrocarbon supply and augment its energy sustainability.
According to Intermarket Securities, the consortium, led by MOL as the operator, is currently in negotiations with the government regarding the applicability of PP12 pricing for new discoveries in the Tal block. After the previous discovery at Mamikhel South, the consortium secured a gas sale agreement with a third party at a price higher than PP12 ($5.99/ per mmbtu at a benchmark oil price of $80 per bbl).
It is anticipated that the consortium will pursue a similar pricing strategy for Razgir’s gas. However, if they fail to reach an agreement with the third party, this could delay production from Razgir-1 and potentially hinder further exploration activities in the region.
