- Three existing discoveries provide opportunity for near-term cash flow
- Over 20 other prospects identified
- Philippine fiscal regime the most attractive in SE Asia
- The exploration potential of the Philippines has been validated by the entry of major players, including Shell, Chevron, BHP Billiton and Exxon Mobil
On March 11, 2010, we signed farm-in agreements for a 12.5% equity interest in Service Contract 54A (SC 54A). SC 54A is located offshore in the North West Palawan basin of the Philippines and covers an area of 862 square kilometres (333 square miles). The property contains several development ready discoveries and mutually exclusive exploration targets within the SC 54A contract area.
Click here for an interactive map of the area
Project partners in SC 54A are project operator Nido Petroleum Ltd. (Nido) of Australia at 42.4%, Kairiki Energy Ltd. of Australia at 30.1% and Trafigura Ventures III B.V. of Singapore at 15%. Tindalo-1 Well
In 2008, Nido completed a two well exploration program in SC 54A that resulted in the Tindalo and Yakal oil discoveries. Both wells were suspended without testing as potential oil producers based on interpretation of well log and drilling data.
On May 30, 2010, the Tindalo-1 well successfully flowed first oil to surface. The well was on stream for approximately 97 days until September 5, 2010, and produced 194,336 barrels of oil before being suspended due to water influx. The crude oil production was sold to a buyer in South Korea.
Remediation efforts to reduce the water influx proved to be unsuccessful and on December 29, 2010, the project partners decided to abandon the Tindalo well. An additional 75,000 barrels of oil was produced during this period.
In July 2011, the Philippine Department of Energy approved an application by the joint venture partners for a twelve month extension to allow the joint venture partners additional time to fully integrate the results of the 3D reprocessing project being undertaken over the block. Integration of this work will provide the basis for developing and implementing the forward strategy for the block including high-grading potential drilling targets to meet the well commitment in the succeeding sub-phase, Sub-Phase 7, should the SC 54A joint venture decide to enter into this sub-phase. Other SC 54A Oil Targets
- Drilled and suspended for production in 2008
- Crestal offset to the vintage Nido-1 well that tested at 1,400 barrels per day
- 78 to 93 metre (226 to 305 foot) oil column
- 28.9 degree API oil
- Plan of development approved by Philippine Government
- Ready to complete and produce at short notice if required
- Crestal offset to the vintage Nido-1X1 well that tested at 1,464 barrels of oil per day
- 3-D seismic data is currently being processed and interpreted
Signal Head 2:
- >90 metre (295 foot) oil column interpreted from well log and drilling data
- Requires 3-D seismic
- Requires new well
- Drill ready prospect
- 2-D and 3-D seismic coverage
- Planning and design work for well has commenced
Other prospects include:
- Signal Head