OGDC’s successful well commencements boost investor confidence

In a notification sent to PSX on 03/06/2024, Oil and Gas Development Company Limited (OGDC) has indicated the expectation of increased revenues and profits due to successful drilling.

Production Commencement – New Development Well Chanda-7

The Chanda-7 well has been successfully tested, completed, and brought into production. The well, drilled to a depth of 5492 meters, targeted the Wargal, Kingriali, and Datta formations. Currently, it produces 305 barrels per day (BPD) of oil, 2.5 million standard cubic feet per day (MMSCFD) of gas, and 3 metric tons per day (MTD) of LPG. The gas is being injected into the SNGPL network via a 1.3 km flow line connected to the Chanda Plant. This project is a collaborative effort, with OGDCL as the operator holding a 72% stake, GHPL with 17.5%, and Orient Petroleum Inc. with 10.5%. The well is located in district Kohat, Khyber Pakhtunkhwa province.

Production Revival – Kunnar-8 Well

The Kunnar-8 well has been successfully revitalized to enhance production efficiency and resource recovery. After re-evaluating the potential of the Lower Goru upper sands, the well was re-completed with an Electrical Submersible Pump (ESP), resulting in an additional 540 BPD of oil. Located in district Hyderabad, Sindh province, the Kunnar-8 well is fully owned by OGDCL, which holds a 100% working interest in the Kunnar Mining Lease Area. This initiative highlights the company’s commitment to optimizing production and the effectiveness of modern recovery techniques in rejuvenating mature wells.

OGDC shares were last trading at Rs. 132.17 today.