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

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

“We are pleased to announce the gas discovery from Sawan South Block lower Goru B Reservoir Sand of Shahu-1 well located in district Khairpur, Sindh,” read the statement.

The joint venture comprises of 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%).

OGDCL said the well was spudded in on August 18, 2024 and has been successfully drilled down to the depth of 12,675 ft MD.

“The well was estimated to produce gas at rate of around 10 million standard cubic feet per day (mmscfd) gas at Wellhead Flowing Pressure (WHFP) of ~4100 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.

Last month, OGDCL discovered hydrocarbon reserves at Akhiro-1 exploratory well located in district Khairpur.

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%.