NEWS / UPDATES
as of 15 May 2017
Galoc Field production in 2016 totaled 1,872,440 barrels which was consistent with the full-year production forecast of 1.897 million barrels. The Galoc Field achieved another milestone early this year when it topped the Nido Field as the Philippine field with the most produced oil. This came about sometime during the third week of January, with Galoc’s 19.194 million barrels production surpassing Nido’s output of 19.192 million barrels in the same period. Production continues, averaging 4,100 barrels of oil per day. To date, a total of fifty seven (57) shipments have been completed and sold mostly to repeat buyer traders and refineries in the South East Asia region.
Block operator Galoc Production Company (GPC) completed their 2-well drilling campaign in early May using the drillship Deepsea Metro I. Galoc-7 well was spudded on March 31, 2017. It drilled through the reservoir objective Galoc Clastic Unit (GCU) which was found to contain hydrocarbons, although well results have yet to be fully evaluated. GPC followed up with Galoc-7ST, a sidetrack from Galoc-7, on April 19. The well likewise drilled through the prognosed hydrocarbon-charged GCU reservoir. Both wells have since been plugged, the rig demobilized and was off-hire to the Galoc Joint Venture on May 2, 2017. Results from the two wells will be evaluated and incorporated into relevant sub-surface models to assess the commerciality of a potential Galoc Phase III development.
Galoc Production Area Floating Production and Storage Vessel
Nido, Matinloc, and North Matinloc Production Area
Meanwhile, Philodrill continues to have production from three smaller producing fields. Last year, the Nido, Matinloc and North Matinloc Fields produced a combined volume of 135,510 barrels, as against the 112,560 barrels forecast full-year production for 2016. Pilipinas Shell continues to be the exclusive buyer of the crude mix.
Other Petroleum UpdatesProjects
In Service Contract 6A – Octon Block, Philodrill continues with the Pre-Stack Depth Migration processing by geophysical contractor DownUnder Geosolutions (DUG), after which a re-run of the quantitative interpretation will be undertaken. These activities aim to further investigate all the identified structures and horizons of interest in the northern portion of the block.
Over at the SC 6B - Bonita Block, the JV partners continue to wait for the decision of the Department of Energy (DOE) on the requested inclusion of the Cadlao Field into SC 6B. Any forward plans for the block will largely depend on the DOE appending the Cadlao Field into the Bonita Block.
In Service Contract 14C-2 – West Linapacan, Philodrill finally received the re-processed 2014 PSDM seismic data from DUG and is now setting up a seismic mapping project for interpretation work using the reprocessed data. This activity formally brings back the joint venture to continue doing geologic and geophysical work over the block which was disrupted when RMA was disqualified by the DOE as a service contractor.
In October 2016, the DOE approved the transfer of erstwhile operator Pitkin’s 70% interest and operatorship of the SC 53 - Mindoro Block to Mindoro-Palawan Oil & Gas Inc. (MPOGI). Early this year, MPOGI formally received the DOE’s approval for the submitted Work Program and Budget for 2017 which was revised to allow the re-scheduling of the Progreso-2 drilling program from the first quarter of 2017 to December 2017.
Lastly, processing of the newly acquired broadband 2D data over the SC 74 – Linapacan Block was completed last December 2016. Since then, the first phase interpretation of the acquired gravity and magnetic data has been completed. The 2D seismic is presently being interpreted for incorporation into the second phase of the gravity and magnetic analysis. The ideal outcome is a coherent geological model of the area, with SC 74 Block serving as the correlation bridge in understanding the geology of the known productive offshore areas to the onshore areas in NW Palawan.
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.