AKD Research has released a report on the revival of gas production at the Jand-1 well, located in District Attock. The report indicates that OGDC has successfully resumed gas production from the Jand-1 well in Punjab (Dakhni M.L.) following recompletion and stimulation carried out by its in-house technical team.

The well is currently producing 21 million cubic feet per day (mmcfd), which is three times its previous output of 7.0 mmcfd. Initially discovered in 2014 and brought into production in 2019, output had previously halted due to mechanical issues. We estimate that the revival of production will contribute approximately PKR 0.92 per share to OGDC’s earnings. Notably, the Jand field contains recoverable gas reserves of 12.4 billion cubic feet (bcf), suggesting a production lifespan of around 1.6 years at current flow rates.

We maintain a ‘BUY’ recommendation for OGDC, with a target price of PKR 522 per share by December 2026. This outlook is supported by several factors: i) growth in the production profile due to RLNG curtailments, ii) enhanced exploration prospects due to an improving liquidity situation, iii) an 8.33% stake in the highly promising Reko Diq Mining Project, iv) offshore working interests in the Abu Dhabi Offshore Block-5, in collaboration with consortium partners, and v) an increase in cash payouts.

Courtesy – AKD Research