Oil and Gas Development Company Ltd (OGDC) has announced an oil discovery at the exploratory well Chakar-1, located in District Tando Allah Yar, Sindh, yielding 275bpd of crude oil. The company has 95% working interest in the said well, and we anticipate the aforementioned discovery to contribute an annualized EPS impact of ~PkR0.16/sh for the company.

We reiterate our ‘BUY’ stance on OGDC with a Dec’25 target price of PkR371/sh, alongside FY26 DY of 8.6%. Our outlook is strengthened due to the following aspects: i) strong production profile, ii) higher future exploration prospects on back of improving liquidity situation, iii) 8.33% stake in highly prospective Reko Diq Mining Project, iv) offshore working interest in Abu Dhabi Offshore Block-5, along with consortium partners, v) improvement in cash payouts, and vi) potential JV with U.S. firms to explore one of the world’s most significant unexploited shale reserves.

Courtesy – AKD Research