Oil and Gas Development Company Ltd (OGDC) has made an oil and gas discovery at the Dars West-3 developmental well in Tando Allah Yar, Sindh. Spudded on 31st Dec 2025, the well has a combined production potential of 9.70 mmcfd of gas and 580 bpd of oil. OGDC is the field operator with a 77.5% working interest. Notably, the company’s production from Dars West 1 & 2 is currently yielding 17.4 mmcfd of gas and 690 bpd of oil, as per PPIS Dec’25 data. We anticipate the aforementioned development to have an annualised EPS impact of ~PkR0.56 per share for the company.
We have a ‘BUY’ stance on OGDC with a Dec’26 TP of PkR522/sh, due to i) growing production profile, alongside strong reserve replacement, ii) higher exploration prospects on back of improving liquidity situation, iii) 8.33% stake in highly prospective Reko Diq Mining Project, iv) offshore working interests in Abu Dhabi Off shore Block-5, along with consortium partners and v) improvement in cash payouts.
Courtesy – AKD Research
