NEWS / UPDATES
as of 15 December 2016
Production from the Galoc Field continues, currently averaging 4,700 barrels of oil per day. For the first eleven months of the year, the field produced about 1,728,680 barrels which is consistent with the full-year production forecast of 1.897 million barrels for 2016. By end- 2016, the field is forecast to produce 18.71million barrels since the start of its commercial run in October 2008. To date, a total of fifty four (54) shipments have been completed and sold mostly to traders and refineries in the South East Asia region.
In October 2016, the Galoc Joint Venture partners formally approved the drilling of the G7 appraisal well and sidetrack which will test the presence and quality of the Galoc Clastic Unit reservoir in the Mid-Galoc area and to determine the type of any reservoired fluid. The G7 drilling program has been presented to and approved by the Philippine Department of Energy (DOE). Well drilling is expected to commence in March 2017.
Galoc Production Area Floating Production and Storage Vessel
Nido, Matinloc, and North Matinloc Production Area
Philodrill continues to have production from three smaller producing fields. The Nido, Matinloc and North Matinloc Fields have already produced a combined volume of 124,150 for the first 11 months of the year, as against the 112,560 barrels forecast full-year production for 2016.
Other Petroleum UpdatesProjects
Early this year, Philodrill commenced its programmed seismic re-processing and quantitative interpretation study on Service Contract 6A – Octon Block. The preliminary results obtained from this undertaking point to an improved imaging and hopefully better resource evaluation of the identified structures of interest within the block. Meanwhile, initial results from a parallel re-processing program in Service Contract 6B – Bonita block are still being evaluated.
Since mid-2015, Philodrill had difficulty in getting vital information from erstwhile Service Contract 14 C-2 West Linapacan Block operator RMA WL. Such information would have been helpful in the formulation of substantial work program and plans for the block. Pending the availability of new data, the technical/ commercial audit of the block, which Philodrill focused on after it assumed operatorship in March 2015, has been suspended. In its stead, a program consisting of seismic data re-processing and quantitative interpretation is being contemplated as an attempt to continue geological and geophysical work over the block which was hampered by the lack of new data as a result of the RMA and the SC 14C-2 Joint Venture impasse.
The planned drilling program in Service Contract 53 – Onshore Mindoro Block did not materialize in 2015 due to the unavailability of an appropriate drilling rig and the timely approval of the requisite drilling plan and permits. However, Pitkin Petroleum took advantage of the delay in the drilling to invite new partners, and after a long period of negotiations, Pitkin and Mindoro-Palawan Oil & Gas Inc. (MPOGI) formally agreed to transfer Pitkin’s 70% interests and operatorship of the Mindoro Block to MPOGI. The transfer was formally approved by the DOE in October 2016. The DOE likewise approved MPOGI’s submitted work program which includes drilling of the Progreso-2 well sometime towards the end of 2017.
Lastly, the transfer of Pitkin’s interests and operatorship of SC 74 – Linapacan Block to Philex Petroleum Corporation was approved by the DOE in April 2016, paving the way for the successful acquisition of over 1,600 line-km of full fold broadband seismic, gravity and magnetic data from May 30 – June 10, 2016. The new seismic data are currently being processed in CGG’s center in Singapore.
The Company takes this opportunity to acknowledge the DOE for its continued support and to all the members of the various service contract consortia for their active participation in our projects, particularly in these difficult times.