OGDC Announced Fresh Oil and Gas Discovery in KP’s Kohat District
Pakistan’s leading state-run exploration and production company, Fresh Oil and Gas Discovery (OGDC), has announced a fresh and significant oil and gas discovery at its exploratory well Baragzai X-01 (Slant) in the Kohat district of Khyber Pakhtunkhwa . The discovery, confirmed through multiple successful drill stem tests, adds to a string of positive results at the Nashpa block and strengthens Pakistan’s efforts to reduce its energy import bill .
The development was formally communicated by the company through a notice to the Pakistan Stock Exchange (PSX) and the London Stock Exchange (LSE) on March 4, 2026 .
Fresh Oil and Gas Discovery : Details and Well Flow Rates
The most recent and significant test was conducted over the Lockhart Limestone formation. During a cased-hole drill stem test (DST-05), the well flowed at an impressive rate of 3,765 barrels of oil per day (BOPD) and 11.2 million standard cubic feet of gas per day (MMSCFD) . The flow was recorded through a 32/64-inch choke at a wellhead flowing pressure of 4,080 psig .
This latest result follows four earlier successful cased-hole drill stem tests conducted in other formations, including Kingriali, Datta, Samana Suk plus Shinawari, and Hangu plus Lumshiwal, which also resulted in oil and gas discoveries . Collectively, these tests indicate a prolific multi-zone hydrocarbon system within the structure .
Read Also Here : Silver Price Today Surges to Record High on War Fears
Well Background and Joint Venture Partners
The Baragzai X-01 (Slant) well was spudded on December 30, 2024, as an exploratory well within the Nashpa Exploration License to assess the hydrocarbon potential of multiple formations, including Lockhart, Hangu, Lumshiwal, Samana Suk, Shinawari, Datta, and Kingriali . It was successfully drilled to a total depth of 5,170 meters, reaching the Kingriali formation .
OGDC operates the Nashpa Exploration License with a 65% working interest . Its joint venture partners in this project are:
Pakistan Petroleum Limited (PPL) holding a 30% stake
Government Holdings (Private) Limited (GHPL) with a 5% carried interest
Economic Significance for Pakistan
The discovery is expected to contribute meaningfully toward narrowing Pakistan’s energy supply-demand gap by enhancing indigenous hydrocarbon production . While some individual tests have shown modest flow rates, such as the 225 BOPD and 1.01 MMSCFD from the Lumshiwal formation, the cumulative potential of the multi-zone find is significant .
OGDC stated that this oil and gas discovery will add to the hydrocarbon reserves base of the company, its joint venture partners, and the country . Pakistan has been actively pushing to boost domestic exploration to cut costly energy imports, which expose the economy to global price swings .
The Khyber Pakhtunkhwa province currently accounts for a significant portion of the country’s crude oil production. According to Topline Securities, KP contributes approximately 41% of Pakistan’s crude oil output, while Sindh dominates gas production .
Recent Exploration Successes
The Baragzai X-01 discovery is part of a series of positive exploration results reported in recent months . In January 2026, another discovery in Kohat flowed at 4,100 BOPD and 10.5 MMSCFD. In September 2025, Pakistan Petroleum Limited announced a gas find in Attock district, while Mari Energies reported a new gas discovery in North Waziristan .
Official Statement
In its official communication to the stock exchanges, OGDC stated: “This oil and gas discovery will contribute toward mitigating the energy supply-demand gap through indigenous resources and will add to the hydrocarbon reserves base of OGDCL, its joint venture partners, and the country” .
Analysis by Best Pak Mag
The fresh discovery by OGDC in Khyber Pakhtunkhwa’s Kohat district represents another positive step in Pakistan’s long march toward energy self-sufficiency. The Baragzai X-01 well has proven to be a true multi-zone producer, with hydrocarbons flowing from the Kingriali, Datta, Samana Suk, Shinawari, Hangu, Lumshiwal, and now the prolific Lockhart formations . The cumulative flow rates are encouraging and suggest the Nashpa block remains a jewel in Pakistan’s exploration crown.
From a macroeconomic perspective, every barrel of oil produced domestically directly reduces the pressure on Pakistan’s current account and foreign exchange reserves. The country’s petroleum import bill, while slightly reduced this fiscal year, remains a significant burden . Discoveries like Baragzai, though not overnight game-changers individually, collectively contribute to building a more resilient energy infrastructure.
The joint venture structure—with OGDC as operator alongside PPL and GHPL—represents a model of collaboration between state enterprises that has historically delivered results. The Nashpa block’s continued success validates the technical expertise of Pakistan’s exploration companies and their ability to identify and extract complex hydrocarbon reserves.
For investors, OGDC’s consistent exploration success reinforces its position as a core holding in any Pakistan-focused portfolio. The company’s ability to replace and grow its reserves through discoveries like Baragzai ensures long-term sustainability. As Pakistan pushes to reduce its reliance on imported fuels, state-led explorers like OGDC will remain at the forefront of this national priority.
Read More Here:
