Oil & Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production company, has discovered tight gas at its exploratory well Nur West # 01 located in district Sujawal, Sindh.
The company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“By the Grace of Almighty Allah, Oil & Gas Development Company Limited (OGDCL) as operator (100%) of Nur Development & Production Lease (D&PL) has discovered gas at its exploratory Well Nur West # 01, located in district Sujawal, Sindh Province,” read the notice.
OGDCL shared that the structure of Nur West # 01 was drilled and tested using the company’s in-house expertise to a depth of 2,975 meters.
OGDCL discovers ‘significant’ hydrocarbon reserves in Sindh
“The well tested 1.24 million standard cubic feet per day (MMSCFD) of gas through a 32/64” choke at a wellhead flowing pressure of 150 pounds per square inch (psi) from the Lower Goru Formation.“
OGDCL shared that the discovery is being evaluated as tight gas.
Tight gas is a form of natural gas that cannot flow naturally at commercial rates with conventional methods, it is amongst the major unconventional resources.
Meanwhile, OGDCL said the discovery at Nur West # 01 paves the way for new avenues and will contribute to augmenting the hydrocarbon reserve base of the company and the country.
“In furtherance of strategic direction, OGDCL has embarked on a fast-track implementation of its tight gas exploration program, underlining its commitment to enhancing energy resources,” read the notice.
Back in February, the federal government, in its bid to facilitate investment by the oil and gas industry in unconventional hydrocarbons, prepared Tight Gas (Exploration & Production) Policy 2024.
Through this policy, the government desired to give impetus to tight gas exploration in a technically and commercially viable manner.
As per the company’s latest financial results, OGDCL registered net sales of Rs 120.141 billion during 1QFY24 which ended 30th September 2023. The company’s Profit before Taxation during the period was Rs 86.174 billion.
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