Pakistan’s state-run explorer, Oil and Gas Development Company Limited (PSX: OGDC), has announced a significant new oil and gas discovery at its Baragzai X-01 (Slant) well in Khyber Pakhtunkhwa. The find adds to a string of successful tests at the Nashpa block and bolsters the country’s efforts to address its energy shortfall through enhanced domestic production.
The company, which operates the Nashpa Exploration License with a 65 percent working interest, made the discovery over the Lockhart Limestone formation in District Kohat. Joint venture partners in the block include Pakistan Petroleum Limited with a 30 percent stake and Government Holdings (Private) Limited holding a 5 percent carried interest, underscoring the collaborative nature of Pakistan’s upstream energy sector.
Exceptional Flow Rates Recorded
During a cased-hole drill stem test designated DST-05 in the Lockhart formation, the well delivered exceptional flow rates, producing 3,765 barrels of oil per day and 11.2 million standard cubic feet of gas per day. The test was conducted through a 32/64-inch choke at a wellhead flowing pressure of 4,080 pounds per square inch gauge, according to a company notification to the Pakistan Stock Exchange.
These flow rates represent a commercially significant discovery that will contribute meaningfully to OGDC’s production profile and, by extension, to Pakistan’s domestic energy supply. The combination of substantial oil and gas volumes from a single test zone is particularly encouraging for the economics of field development.
Multi-Zone Hydrocarbon System Confirmed
The Baragzai X-01 (Slant) well was spudded on December 30, 2024, with the objective of testing the hydrocarbon potential of multiple formations, including Lockhart, Hangu, Lumshiwal, Samana Suk, Shinawari, Datta, and Kingriali. The well was drilled to a total depth of 5,170 meters, penetrating the Kingriali formation at its deepest point.
Prior to the Lockhart result, four cased-hole drill stem tests conducted in the Kingriali, Datta, Samana Suk plus Shinawari, and Hangu plus Lumshiwal formations also resulted in oil and gas discoveries. This succession of successful tests across multiple geological formations indicates a multi-zone hydrocarbon system within the same structure, significantly enhancing the overall value of the discovery.
Strategic Importance for Pakistan’s Energy Security
The discovery is expected to bolster OGDC’s reserve base and support Pakistan’s broader efforts to narrow its widening energy supply-demand gap by tapping domestic resources. Each successful discovery reduces the country’s reliance on imported energy, improves the balance of payments, and enhances energy security.
For OGDC, the find adds to the company’s inventory of producing assets and exploration upside, supporting its long-term production profile and shareholder value. The multi-zone nature of the discovery suggests that the Baragzai structure could support sustained production over an extended period.
Technical Details and Development Potential
The successful testing of multiple formations within the same well demonstrates the geological complexity and richness of the Nashpa block. Each tested zone showed commercial hydrocarbon potential, suggesting that the area could support multiple development wells and facilities.
The joint venture partners will now evaluate the full extent of the discovery and determine optimal development plans. Given the flow rates achieved during testing, the Baragzai discovery appears commercially attractive and likely to be fast-tracked for production once necessary approvals and infrastructure are in place.
About Oil and Gas Development Company Limited
Oil and Gas Development Company Limited (OGDC) is Pakistan’s largest exploration and production company, with a diverse portfolio of assets across the country. The company is majority-owned by the Government of Pakistan and plays a leading role in the nation’s energy sector.
About the Nashpa Block
The Nashpa Exploration License is one of Pakistan’s most productive hydrocarbon blocks, located in Khyber Pakhtunkhwa. The block has yielded multiple discoveries and supports significant ongoing production.
