Oil and Gas Development Company Limited (OGDCL), Pakistan’s largest exploration and production (E&P) company, has discovered hydrocarbon reserves at Akhiro-1 exploratory well located in district Khairpur, Sindh.

The listed company announced the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“We are pleased to announce that Sawan South joint venture, comprising Oil and Gas Development Company Limited (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%) has discovered gas from Lower Gour B Reservoir Sand of Akhiro-1 well located in district Khairpur, Sindh,” read the notice.

OGDCL informed that the well was spudded-in on June 15, 2024 and has been successfully drilled down to the depth of 12,442 ft.

“The well was tested successfully at the rate around 10 million standard cubic feet per day (mmscfd) gas at choke size 24/64” at Wellhead Flowing Pressure (WHFP) of 4,000 Pounds per Square Inch (Psig),“ it said.

The company informed that the latest discovery has de-risked further exploration play in Sawan South Block.

“The said discovery will also help and contribute towards improving energy security of the country from indigenous resources and add to the hydrocarbon reserves base,” it added.

Days ago, in a significant development, an MOU was signed between OGDCL and CNPC Chuanging Drilling Engineering Company LTD, the major player in drilling and upstream oil field services of People’s Republic of China, to explore shale and tight gas potential in Pakistan.

As per the company’s latest financial results, OGDCL reported a profit-after-tax (PAT) of Rs208.98 billion for fiscal year ended June 30, 2024.

Earnings registered a decline of nearly 7% as compared to Rs224.62 billion in the same period of the previous year (SPLY).

The company also announced a final cash dividend of Rs4 per share i.e. 40%.