Karachi: Oil and Gas Development Company Ltd. (OGDC) has announced the discovery of a third formation at the Baragzai X-01 well within the Nashpa Block in Khyber Pakhtunkhwa. This new discovery, encompassing the Samana Suk and Shinawar formations, has yielded an output of 3.1 thousand barrels per day (kbpd) of oil and 8.15 million cubic feet per day (mmcfd) of gas via a 32/62 choke.

According to AKD Securities Limited, two previous discoveries were made at the same well in the Kingriali and Datta formations. The cumulative production from these three formations now stands at 9.5 kbpd of oil and 24.15 mmcfd of gas. The incremental earnings impact from the Suk and Shinawar formations is projected at PKR 1.3 per share for OGDC, with a 57.2% working interest, and PKR 1.0 per share for Pakistan Petroleum Limited (PPL), which holds a 27.8% working interest. Combined, the impact is estimated at PKR 3.9 per share for OGDC and PKR 3.0 per share for PPL.

The company anticipates that production from these formations will be operational following the installation of necessary wellhead and surface facilities. AKD Securities maintains a 'BUY' recommendation on OGDC and PPL, citing a growing production profile, enhanced reserve replacement, and improved cash payouts as influencing factors. Additional interests in the Reko Diq Mining Project and offshore block in Abu Dhabi further bolster this outlook.