OGDCL spuds eight new wells in six months

[Muhammad Omar]

The state-owned exploration and production company – Oil and Gas Development Company Limited (OGDCL) – is making tangible efforts to meet the country’s growing energy needs with spudding eight new wells during the half year ended December 31, 2015.

According to an official source, these wells included two exploratory or appraisal wells and six development spuded during the same year.

Elaborating, the source added that the company’s exploratory efforts yielded two new oil and gas discoveries namely Chak Naurang South-1 in district Chakwal and Aradin-1 in district Khairpur in Sindh.

Regarding exploitation of unconventional oil and gas resources, the OGDCL was carrying out a comprehensive study through an international consultant to evaluate shale gas, oil and tight gas and oil potential in its operated blocks, the source added.

The first phase of the study has been completed while second and third phase of the study are currently underway. Moreover, to measure and evaluate shale gas potential at the well-site during the drilling phase, services including well-site Geosciences and Cansister Gas Analysis are being utilised at wells, Kunnar Deep-10 and Suleiman-2.

On production front, the company registered net crude oil production of 40,028 barrels per day, net gas 1,116 MMcf per day, net LPG 312 metric tons per day and net Sulphur production stood at 28 metric tons per day during the period. In pursuit to embark upon new growth opportunities and enhance production base, OGDCL’s intensified exploratory efforts continued during the reporting period and it acquired 2,816 Line km (1H 2014-15: 2,354 Line km) of 2D and 1,545 sq km (1H 2014-15: 508 sq km) of 3D seismic data in various exploratory blocks. Moreover, 4,892 Line km of 2D seismic data of various blocks were processed using in-house resources, the source added. Similarly, the net sales generated total revenue of Rs 86.186 billion with profit after tax of Rs 34.205 billion translating into earnings per share of Rs 7.95 during first six months of current fiscal year.

The OGDCL’s board of directors (BoD) announced second interim cash dividend of Rs 1.20 per share (12%), which would be paid to the shareholders whose names would appear in the register of members on March 14, 2016. During the period under review, the company paid Rs 13.870 billion on the account of taxes. With a portfolio of 61 exploration licences, the company has the largest exploration acreage in Pakistan covering 31 per cent of the total awarded acreage as of December 31, 2015.

Currently, all production volumes are being realised from onshore areas of Pakistan, however, the company also has working interests in Pakistan’s offshore exploration blocks.