OGDCL appraises gas discovery in Kohat

Islamabad: Oil and Gas Development Company Limited (OGDCL) on Friday announced the successful appraisal of gas and condensate from the Lumshiwal Formation at the Bilitang-1 ST-1 exploratory well, located in Kohat district, Khyber Pakhtunkhwa.

The listed exploration and production company disclosed the development in a notice to the Pakistan Stock Exchange (PSX), stating that the appraisal confirms the potential of an existing discovery and strengthens prospects for further exploration in the area.

According to the notice, the well was spudded on August 10 last year and later sidetracked to target improved reservoir quality. It was successfully drilled to a depth of 4,004 metres true vertical depth (TVD).

Based on the interpretation of logging-while-drilling (LWD) and wireline log data, the Lumshiwal Formation was tested at a flow rate of approximately 26.5 million standard cubic feet per day (MMscfd) of gas at a 32/64-inch choke, with a wellhead flowing pressure of 4,214 pounds per square inch (psi).

Read: OGDCL reports major oil, gas discovery in KP

OGDCL said the appraisal has de-risked further exploration in the TAL Block and is expected to unlock additional upside opportunities in the region.

The TAL Joint Venture partners include OGDCL with a 30% working interest, MOL Pakistan Oil & Gas Co. B.V. as operator with 10%, Pakistan Petroleum Limited (30%), Pakistan Oilfields Limited (25%), and Government Holdings Private Limited (5%).

The company noted that the discovery is likely to contribute to Pakistan’s energy security by enhancing indigenous hydrocarbon supplies, while also adding to the reserves base of the joint venture partners.

According to estimates shared by Arif Habib Limited, the discovery is expected to contribute approximately PKR 0.42, PKR 0.66, and PKR 4.80 per share annually to the earnings of OGDCL, Pakistan Petroleum Limited, and Pakistan Oilfields Limited, respectively.