Interim Report and Financial Information
Quarter Ended 30 September 2021
Corporate Information | 02 |
Directors' Interim Review | 03 |
CONDENSED INTERIM FINANCIAL STATEMENTS [UNAUDITED]
Statement of Financial Position | 06 | |
Statement of Profit or Loss | 08 | |
Statement of Comprehensive Income | 09 | |
Statement of Changes in Equity | 10 | |
Statement of Cash Flows | 11 | |
Notes to the Interim Financial Statements | 12 | |
Directors' Interim Review ( | ) | 32 |
Corporate Information
Board of Directors
Mr. Zafar Masud | Chairman |
Dr. Arshad Mahmood | Director |
Mr. Mathar Niaz Rana | Director |
Mr. Mumtaz Ali Shah | Director |
Mr. Muhammad Haroon-ur-Rafique | Director |
Dr. Iftikhar Amjad | Director |
Mr. Akbar Ayub Khan | Director |
Mr. Muhammad Riaz Khan | Director |
Mrs. Shamama Tul Amber Arbab | Director |
Mr. Jahanzaib Durrani | Director |
Syed Khalid Siraj Subhani * | MD/CEO |
* Mr. Shahid Salim Khan relinquished the charge of MD/CEO on 20 October 2021 and Syed Khalid Siraj Subhani assumed the charge of MD/CEO on acting charge basis on the same day. Prior to appointment as acting MD/CEO, Syed Khalid Siraj Subhani served on the Company's Board as an independent Director.
Chief Financial Officer
Mr. Muhammad Anas Farook
Company Secretary
Mr. Ahmed Hayat Lak
Auditors
M/s KPMG Taseer Hadi & Co., Chartered Accountants
M/s A.F. Ferguson & Co., Chartered Accountants
Legal Advisor
M/s Khokhar Law Chambers
Tax Advisor
M/s A.F. Ferguson & Co., Chartered Accountants
Registered Office
OGDCL House, Plot No 3, F-6/G-6, Blue Area,
Jinnah Avenue, Islamabad.
Phone: (PABX) +92 51 9209811-8
Fax: +92 51 9209804-6, 9209708
Website: www.ogdcl.com
Email: info@ogdcl.com
Share Registrar
CDC-Share Registrar Services Limited,
CDC House, 99-B,Block-B, S.M.C.H.S.,
Main Shahrah-e-Faisal,Karachi-74400.
Phone: +92 21 111 111 500
Fax: +92 21 34326053
Website: www.cdcsrsl.com
Email: info@cdcsrsl.com
02 Oil & Gas Development Company Limited
Directors' Interim Review
The Board of Directors of Oil & Gas Development Company Limited (OGDCL) is pleased to present a concise review of the Company's operational and financial performance accompanied with unaudited condensed interim financial information for the quarter ended 30 September 2021.
Amidst the ongoing COVID-19 pandemic and its adverse impact on the economic activity across the globe, OGDCL during the period under review stood resilient and exhibited strict adherence to pandemic related safety protocols so as to protect its workforce and business assets. The wide scale vaccination drives combined with ease in lockdown measures and travel restrictions paved the way towards economic recovery as well as rebound in international crude oil demand and prices. On the back of favorable crude oil price environment coupled with higher crude oil and LPG production, OGDCL's top and bottom line financial results in comparison to the corresponding period of last year increased by 27% and 44% respectively. Moreover, the Company continued with its exploration, development and production activities with the aim to bridge the prevailing energy demand-supply gap in the Country.
Exploration and Development Activities
As of 30 September 2021, OGDCL's exploration acreage stood at 91,795 sq. km representing 42% of Country's total area under exploration (source: PPIS). The Company's exploration portfolio currently comprises fifty (50) owned and operated joint venture exploration licenses. Additionally, the Company possesses working interest in nine (9) exploration blocks operated by other E&P companies.
In order to discover oil and gas reserves, OGDCL during the period under review acquired 336 Line km of 2D seismic data (1Q 2020-21: 975 Line km) representing 42% of total 2D seismic data acquisition in the Country. Moreover, the Company using in-house resources processed/reprocessed 518 Line km of 2D and 360 sq. km of 3D seismic data.
On the drilling front, OGDCL spud three (3) wells (1Q 2020-21: 4 wells) including two (2) exploratory wells [Bago Phulphoto-1 & Bewato-1] and one (1) development well [Hakeem Daho-3]. Moreover, drilling and testing of seven (7) wells pertaining to previous fiscal year were also completed. Total drilling recorded during the three months was 11,678 meters (1Q 2020-21: 17,620 meters).
Development Projects
First Quarterly Report 2021-2203
Discoveries
OGDCL's exploratory efforts to locate reserves yielded three (3) oil and gas discoveries having expected cumulative daily production potential of 37 MMcf of gas and 2,850 barrels of oil. Aforementioned discoveries include Wali-1 (Kawagarh), Wali-1 (Hangu) and Wali-1 (Lockhart) in district FR Lakki, KP province. Preliminary reserves estimates attributable to these discoveries are 293 billion cubic feet of gas and 15 million barrels of oil, combined 71 million barrels of oil equivalent.
Production
In line with its production strategy to boost oil and gas production, OGDCL during the period under review injected four
-
operated wells in the production gathering system. These injected wells include Tando Alam-21,Sial-1, Pasakhi-
12 and Mangrio-2 which cumulatively yielded gross crude oil and gas production of 69,770 barrels and 184 MMcf respectively. Overall, Company's production during the reporting period contributed around 47%, 29% and 36% towards Country's total oil, natural gas and LPG production respectively.
In an effort to arrest natural decline and sustain production from mature wells, OGDCL during the period under review carried out twenty two (22) work-over jobs comprising three (3) with rig and nineteen (19) rig-less. Moreover to induce improvement in the current well flow parameters, pressure build-up survey jobs were completed at various wells of producing fields; Mela, Pasahki, Nashpa, Qadirpur and Maru-Reti fields.
Despite natural decline at various mature producing fields, OGDCL witnessed increase in its crude oil and LPG production in comparison to the corresponding period last year. The Company's average daily net LPG production clocked in at 805 Tons portraying an increase of 13% largely due to start-up of production from Mela and Nim fields coupled with higher production from Nashpa and KPD-TAY fields. Likewise, average daily net crude oil production clocked in at 37,347 barrels showing an increase of 3% primarily owing to commencement of production from Mangrio and Nim fields combined with increase in production from Pasahki, KPD, Tando Alam, Mela and Kal fields.
OGDCL's average daily net saleable gas production clocked in at 845 MMcf which compared to preceding year was lower by 7%, mainly due to natural decline at KPD and Qadirpur fields. Moreover, production decline was recorded on account of annual turn around at production fields; Qadirpur (5-11 August 2021), Mela (22-25 August 2021) and Nashpa (22-29 August 2021). Likewise, decline in production share from NJV fields combined with less gas intake from Uch fields by M/s UPL owing to less power demand by WAPDA contributed towards lower gas output.
Average daily net saleable crude oil, gas and LPG production including share in both operated and non-operated JV fields is as follows:
Products | Unit of | 1Q | 1Q |
Measurement | 2021-22 | 2020-21 | |
Crude oil | Barrels per day | 37,347 | 36,221 |
Gas | MMcf per day | 845 | 904 |
LPG | Tons per day | 805 | 714 |
Financial Results
OGDCL during quarter ended 30 September 2021 registered improved Sales Revenue of Rs 71.531 billion (1Q 2020-
- Rs 56.347 billion). Higher sales are attributable to increase in average basket price of crude oil to US$ 71.43/barrel (1Q 2020-21: US$ 42.95/barrel) leading to average realized price of US$ 62.23/barrel (1Q 2020-21: US$ 38.74/barrel). Moreover, the Company recorded increase in realized prices of gas and LPG averaging Rs 391.49/Mcf (1Q 2020-21: Rs 372.99/Mcf) and Rs 97,039/Ton (1Q 2020-21: Rs 58,951/Ton) respectively. Furthermore, enhancement in crude oil and LPG production lent strength to business financials.
In addition to the above, OGDCL's profitability during the period under review was positively impacted by increase in finance and other income mainly on account of exchange gain. Moreover, decline in operating expenses and exploration & prospecting expenditure contributed towards improved financial performance.The Company recorded Profit after Tax of Rs 33.629 billion (1Q 2020-21: Rs 23.344 billion) translating into an Earnings per Share of Rs 7.82(1Q 2020-21: Rs 5.43).
04 Oil & Gas Development Company Limited
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Oil & Gas Development Co. Ltd. published this content on 29 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2021 10:40:06 UTC.