Philippines’ Palawan55, a subsidiary of Phinma Petroleum and Geothermal, has entered into the appraisal period of Service Contract No. 55 (SC 55), located in the Palawan basin offshore Philippines, committing to drill one deepwater well within the first two years of this period.
The SC 55 covers a deepwater exploration block off southwest Palawan, covering an area of 9,880 sq. km.
Palawan55 on Friday, August 9 notified the country’s Department of Energy (DOE) of the entry of the SC 55 consortium into the appraisal period of SC 55 effective August 26, 2019.
The SC 55 consortium committed to drill one deepwater well within the first two years of the appraisal period and, following reinterpretation of certain seismic data outside of the current study area, may undertake a new 3D seismic program to mature other prospects within SC 55 to drillable status.
The SC 55 consortium submitted an indicative Appraisal Work Program to the DOE to support this commitment.
Palawan55 holds a 37.5% participating interest in and is the operator of SC 55. Pryce Gases (PGI) is its partner with a 25% interest. PGI acquired its interest in SC 55 in July 2015 via a farm-in agreement with Otto Energy, a former operator and ex-consortium partner. Red Emperor Resources is also a partner in the project with a 37.5% equity interest.
In 2015, the SC 55 Consortium drilled the Hawkeye-1 well in 1,700 meters of water at a cost of $23.5 million. The well discovered natural gas at the crest of the target structure but the estimated volume of the accumulation was deemed by the former operator to be non-commercial on a stand-alone basis.
Palawan 55 said in July it was undertaking quantitative interpretation of over 1,000 sq. km. of recently reprocessed 3D seismic data over the greater Hawkeye area and a large carbonate reef prospect.
Offshore Energy Today Staff
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