Oil and Gas Development Company Limited (OGDC) has registered a significant increase in oil production from Nashpa Well-10 in Nashpa Development and Production Lease (D&PL), located in Karak District, Khyber Pakhtunkhwa.

The exploration and production (E&P) company shared the details of its production enhancement via notice to the Pakistan Stock Exchange (PSX) on Friday.

“Referring to our previously disclosed information dated September 13, 2023, regarding production enhancement at Nashpa Well-10 through Rigless interventions in the Hangu- Lumshiwal formation, it was reported that the Well’s production had been elevated to 1,340 barrels per day (bpd) of oil.

“A further increase in production at Nashpa Well-10 has been achieved through optimization initiatives including rigless interventions i.e. perforation washes in the Datta, Shinawari, Samanasuk, Lumshiwal, and Hangu formations,” OGDC said in a statement.

OGDCL’s KP well sees major boost in production

Post optimization initiatives by the company, the well yielded an additional oil production of 530 bpd.

“Consequently, the total production from the well has now reached 1,870 bpd of oil and 7.02 mmscfd of gas, which is being injected into the SNGPL network, besides recovery of 10 M ton/day of LPG,” it added.

OGDC, being an operator, has 56.45% stake, while PPL has 28.55% stake.

“The incremental production is expected to have an annualized earnings impact of Re0.35/share and Re0.34/share on OGDC and PPL, respectively,” said Arif Habib Limited in a note.

OGDC is the largest exploration and production (E&P) company in Pakistan with operations including exploration, drilling operation services, production, reservoir management, and engineering support.

PPL sees significant boost in oil & gas production

The company has the most extensive exploration acreage in Pakistan, covering over 40% of the country’s total acreage awarded with net hydrocarbons of oil and gas.

For the first six months of the financial year 2023-24, the company reported a PAT of Rs123.3 billion, up 30% as compared to Rs95.01 billion in same period last year.

The market capitalisation of OGDC at the PSX stands at $2.15 billion.