OGDC discloses discovery at Zin Block – Alfalah Securities Limited

Karachi : Oil and Gas Development Company Ltd. (OGDC) has reported to have made a major gas discovery in Zin Block in Marri-Bugti area of Baluchistan.

According to Alfalah Securities, the initial exploration well has found significant hydrocarbons in zone 1 and 2. Further appraisal wells would be required to conclude the size of the deposit. However, it is expected to hold 8-10 trillion cubic feet of gas but probably of low-BTU. The initial commercial gas flows from the field is expected in early 2013 therefore, the earnings impact is expected to arise in FY14 depending on the gas flow.

Zin Block is an OGDC’s operated joint venture concession with OGDC having 95% and GHPL having 5% stake and covers 5,560 Sq. Kms. The work in the area could not be started earlier due to high law and order risk in this area of Baluchistan which still remains a major concern in continuation of exploration and development of this field.

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