KARACHI, Sept 28: Oil and Gas Development Company Limited (OGDC) has made a discovery in Mela Well No.01 — Naspha Exploration Licence, a notice received and announced at the Karachi Stock Exchange on Thursday said.

Astute analysts had already gathered the information from Pakistan Petroleum Information Services (PPIS) website on Wednesday. “The E&P reserves data as of June 30, 2006 on the website showed Pakistan’s balance recoverable oil and gas reserved stood at 324 million barrels and 32.6 tcf, respectively,” said an analyst, adding: “An unprecedented increase was observed in Tal block’s reserve size.”

The OGDC notice on Thursday stated that the company had made discovery of oil and gas after drilling Mela Exploratory Well No.1 in the Nashpa Exploration Licence. The well is located in district Kohat of NWFP.

The company also said that the Mela Exploratory well was drilled down to the depth of 4,952 metres, followed by acid stimulation job. OGDC also tabulated the “post-stimulation deliverability of the well”.

Faraz Farooq, energy sector analyst at JS Capital Market, said the well was spudded on April 12, 2005 and drilled to the depth of 4,952 metres. OGDCL is the operator of the block with 56.45 per cent stake. The other stakeholders in Nashpa Block are PPL (26.05 per cent stake) and GHPL (17.05 per cent share). A successful Drill Stem Test (DST) was carried out which flowed at a rate of 12.0 mmcfd of gas and 4,100 bpd of oil.

Analyst Saad Bin Ahmed at Capital One Equities commented on the new find: “The company has reportedly found oil and gas reserves in Kohat district where it possesses two concessions namely, Gurgalot and Soghri.” The latest find has increased the production capacity by 4,000 bopd and 12 mmcfd of oil and gas, respectively.

“The recent discoveries at Mela and Kohat have increased company’s production capacity to the extent of approximately 48,159 bopd,” the analyst says.