In a notification sent to the bourse on Monday, Oil and Gas Development Company (OGDC) announced that it had discovered both gas and condensate in an exploration well Tando Allah Yar South West #1, which is located in district Hyderabad, Sindh Province.
The structure of Tando Allah Yar South West #1 was drilled and tested using OGDCL’s in house expertise. The well was drilled down to the depth of 3250 meters.
The well has tested 10 MMSCFD of gas and 72 BPD of condensate through 32/64’’ choke at wellhead flowing pressure of 2440 Psi from ‘’Massive Sands’’ of Lower Guru formation.
The discovery of Tando Allah Yar South West #1 is the result of aggressive exploration strategy adopted by the company. It has opened a new avenue and would add to the hydrocarbon reserves base of the OGDCL. It would also be helpful in mitigating energy crisis in the country.
OGDC also operates the Khewari block with a 95 per cent interest, while Pakistan’s government holding the rest through Government Holdings.
OGDC has underperformed peers by 8% over the past 6 months. Upside triggers include determination of gas price for Uch-II plant, which was recently completed and is producing 130mmcfd gas. OGDC is tentatively booking US$5.0/mmbtu, and price can go higher by about US$1.0/mmbtu.
OGDC injected 18 new wells in its production gathering system in first three quarters of the current fiscal year, adding approximately 1,337,395 barrels crude oil and 9,348 mmcf gas more in its pool, it had said earlier.