14th Nov 2011 11:21
No. CS04-08(KSE/LSE/ISE)
November 14, 2011
1. | The General Manager Karachi Stock Exchange (Guarantee) Limited, Stock Exchange Building Stock Exchange Road Karachi Fax No. 021-111-573-329 | 3. | The Secretary Islamabad Stock Exchange (Guarantee) Limited, 101-E, Fazal-ul-Haq Road Islamabad Fax No. 051-2275044
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2. | The Secretary Lahore Stock Exchange (Guarantee) Limited, 19-Khayaban-e-Iqbal Lahore Fax. No. 042-111-441-441 | 4. | London Stock Exchange Plc. 10 Paternoster Square, London EC4M 7LS Tel: (44) 020 7334 8907 |
SUBJECT: DISCOVERY OF OIL AND GAS AT NASHPA # 2
Sir,
By the grace of Almighty Allah, Oil & Gas Development Company Limited (OGDCL), Operator of Nashpa Exploration License, together with its Joint Venture partners Pakistan Petroleum Limited (PPL) and Government Holding Private Limited (GHPL) have discovered a new hydrocarbon bearing horizon from its appraisal well Nashpa 02, located in District Karak, Khyber Pakhtunkhwa. The structure of well was delineated, drilled and tested utilizing indigenous expertise.
2. Nashpa # 02 well was drilled down to the depth of 4340 Meter targeting to test the oil and gas potential of Datta, Shinawari, Samanasuk, Lumshiwal, Hangu and Lockhart formations.
3. Significant reserves of hydrocarbons have been found at well Nashpa # 02. The first targeted zone "Datta Sandstone" has been tested and produced 3370 barrels per day of crude oil and 11 MMCFD gas through 32/64" choke at well head flowing pressure 3800 Psi.
4. This discovery will add to the hydrocarbon reserves' base of the Company and joint venture partners, bringing significant savings to the country in term of oil import bill. Testing of another four potential reservoir formations will also be undertaken wherein similar encouraging results are expected. The full flow potential of this well and the extent of the discovery will be determined after completing the testing program.
5. The above is being provided to you in compliance with the requirements of Clause No. (xxiii) of the Code of Corporate Governance.
Thanking you.
Sincerely,
(Eram Ali Aziz)
Company Secretary
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