AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
KARACHI: Oil and Gas Development Company Ltd (OGDC) has announced a new discovery of oil and gas at its exploratory well Fakir-1, situated in the Bitrism E.L., Khairpur, Sindh. The company, holding a 95% working interest in the project, has reported successful testing of the Lower Goru formation, revealing a gas flow rate of 6.4 million cubic feet per day (mmcfd) and crude oil production of 55 barrels per day (bpd).
This discovery is expected to positively impact the company’s earnings, with an estimated annualized earning per share (EPS) increase of approximately 0.36 Pakistani Rupees (PkR) per share.
AKD Securities Limited has reiterated its ‘BUY’ recommendation for OGDC, setting a target price of PkR 371 per share by December 2025. The firm also anticipates a dividend yield of 9% during the same period.
The positive outlook on OGDC is supported by several factors, including a robust production profile and improved exploration prospects, bolstered by an improving liquidity situation. The company also holds an 8.33% stake in the promising Reko Diq Mining Project and maintains offshore interests in Abu Dhabi’s Offshore Block-5, in partnership with a consortium. Additionally, enhancements in cash payouts contribute to the optimistic view for the company’s future performance.