Oil and Gas Development Company Limited (OGDC) has announced a significant hydrocarbon discovery at the Bobi Deep-1 well in the Sanghar district of Sindh, marking an important milestone for the company.
Read More: https://theboardroompk.com/pakistans-pine-nut-chilgoza-exports-to-china-nearly-double-in-two-years/
Discovery Details
Bobi Deep-1 represents OGDC’s first hydrocarbon discovery from a major sandstone reservoir in the area. The well was drilled to explore deeper prospects and successfully encountered hydrocarbons. During testing, the well flowed at a rate of 2,000 barrels per day (BPD) of oil and 1.1 million cubic feet per day (MMCFD) of gas through a 32/64-inch choke.
This discovery is expected to open new exploration avenues in the surrounding blocks. Industry experts believe the find could significantly expand the resource potential in the region and encourage further drilling activities by other operators.
Earnings Impact
The discovery carries strong financial implications for OGDC. Assuming 100% working interest, the company has estimated substantial earnings upside. At crude oil price of $90 per barrel and gas price of $5 per MMBTU with PKR/USD at 280, the net revenue impact stands at Rs14.7 billion for oil and Rs618 million for gas. After accounting for costs, net income is projected at Rs5.89 billion from oil and Rs247 million from gas.
This translates into an EPS impact of Rs1.37 from oil and Rs0.06 from gas, delivering a combined EPS boost of Rs1.43. The positive earnings contribution is likely to support OGDC’s share price performance in the near term.
Analysts at Optimus Capital Management view this as a value-accretive development for the national oil and gas giant. The discovery not only strengthens OGDC’s reserve base but also highlights the untapped potential of deeper sandstone formations in mature basins. With Pakistan facing energy challenges, such indigenous discoveries are critical for reducing import dependence and enhancing energy security.
Further appraisal and development activities are expected in the coming months as OGDC moves towards commercial production from the Bobi Deep-1 discovery.