ISLAMABAD: The public sector oil and gas exploration and production entity-Oil and Gas Development Company Limited's (OGDCL) net sales increased to Rs62.416 billion compared with Rs53.795 billion in the corresponding quarter of last year.

Net profit before taxation increased to Rs46.052 billion compared with Rs36.414 billion in the corresponding period last year, says a source.

Similarly the net profit after taxation increased to Rs33.588 billion as against Rs25.656 billion in the corresponding period of preceding year translating into Earnings per Share of Rs7.81

The Board of Directors declared first interim dividend of Rs2.0 per share (20 percent) Operating profit margin and net profit margin were 62 percent and 54 percent respectively.

Average net realized price of crude oil sold was US$ 85.76/bbl as against US$ 81.53/bbl during corresponding period last year.

Average net realized price of natural gas sold was Rs274.87/Mcf as against Rs251.16/Mcf during corresponding period last year.

The source added two new wells including one (1) exploratory well namely Jakhro West-1 and one (1) development well namely Qadirpur-50 were spud during the period under review.

Average net crude oil production of 40,205 barrels per day, net gas production of 1,181 MMcf per day and net LPG production of 139 M. Tons per day was achieved during the period under review.

The source said various Exploration and Production Companies are holding 125 exploration licences to explore oil and gas reservoirs in the country, as it is feared that the existing gas reservoirs of the country will last for 16 years only.

"Currently, 50 blocks are under process for award to different Exploration and Production Companies and the current gas production rate, the balance recoverable gas reserves of the country will last for about 16 years," says an official source.

Thus, the government has taken different steps to explore natural gas in the country, the source added.

The source informed for fiscal year 2013-14, drilling of 59 exploration wells and 51 development wells have been planned for enhancement of oil and gas production in the country.

The source said Petroleum (Exploration & Production) Policy, 2012 has also been notified that offers lucrative incentives to the investors for investment in E&P sector of Pakistan.

"Government is making efforts to enhance exploration activities in all the areas of Pakistan by improving law and order and providing secure environment to the local and foreign E&P companies," the source said.

The source said efforts are being made to explore deeper prospects and under explored geological frontiers to add new oil and gas reservoirs.

The government is encouraging investment in exploring unconventional hydrocarbon reserves by introducing new technologies, sources added.

Source: APP