Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) firm, has announced the discovery of natural gas reserves at the Shahu-1 well in district Khairpur, Sindh.

This development was shared in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

In its statement, OGDCL expressed satisfaction over the gas discovery from the Sawan South Block’s lower Goru B Reservoir Sand at the Shahu-1 well.

The joint venture for this project includes OGDCL (20% working interest), United Energy Pakistan Limited (UEPL), the operator (75%), Government Holding Private Limited (GHPL) (2.5%), and Sindh Energy Holding Limited (SEHL) (2.5%).

The well was spudded on August 18, 2024, reaching a depth of 12,675 feet. OGDCL estimates that the well could produce approximately 10 million standard cubic feet per day (mmscfd) of gas at a Wellhead Flowing Pressure (WHFP) of around 4,100 pounds per square inch (Psig).

This discovery is expected to enhance energy security in the country by utilizing indigenous resources and contributing to the hydrocarbon reserve base. OGDCL also noted that the finding has reduced risks for further exploration in the Sawan South Block.

Last month, the company reported another hydrocarbon discovery at the Akhiro-1 exploratory well, also in Khairpur district. In its latest financial results, OGDCL recorded a profit-after-tax of Rs208.98 billion for the fiscal year ending June 30, 2024, reflecting a nearly 7% decline from Rs224.62 billion in the previous year.

Additionally, the company declared a final cash dividend of Rs4 per share, equivalent to 40%.

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