KARACHI, PAKISTAN: Oil & Gas Development Company Limited (OGDCL), operator of Bitrism Block has announced oil and gas discovery from its exploratory well Pandhi # 01, which is located in District Sagnhar, Sindh.

The well has tested 9.12 Million Cubic Feet per Day (MMCFD) of gas and 520 Barrels per day of oil through choke at Wellhead flowing pressure of 840 Pounds per square inch (Psi) from Lower Goru (Basal Sand) Formation.

The joint venture of Bitrism Block comprises of OGDCL as operator with 95 percent stakes while Government Holdings (Pvt.) Limited holds 5.0 percent stakes in the block.

“The oil and gas discovery of Pandi # 01 is the result of aggressive exploration strategy adopted by the company in pursuance of the Government’s directive to explore and produce local oil and gas. It would add to the hydrocarbon reserves of OGDCL and the country,” a bourse filing said.

It may be recalled that OGDC had announced 120bpd of oil and 10.44 mmcfd of gas from Mangrio Well #01 on May 13, 2019. Mangrio #01 is a exploratory cum appraisal well located in district Tando Muhammad Khan, Sindh.

According to OGDC website, the company has so far drilled 788 wells and made a total of 120 discoveries. The company currently produces 41,256 barrels of oil/day and 1,050 mmcfd of gas as well as 845 MT of LPG/day.

Ahsan Mehanti, an analyst at Arif Habib commodities said the discovery announced by the OGDC would be quite positive for the oil and gas sector. “OGDC announced the discovery at the close of stock market, otherwise the impact would have been reflected on the oil and gas scrips”.

He said the market was expecting record growth in oil and gas sector financial results due to hefty rupee depreciation, as their earnings are pegged in foreign exchange adding this oil and gas discovery would bode positive for the exploration and production companies’ scrips.

“Such a significant discovery is good news for equity market as well as a sentiment builder for the country’s economy.”