Conversion of GSEC 77 Into Petroleum Service Contract (SC) 42 Over NW Palawan Finalized
PSE Circular for Brokers No. 2477-98 • Philippine Stock Exchange • Circulars for Brokers • Oct 30, 1998
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October 30, 1998 PSE CIRCULAR FOR BROKERS NO. 2477-98 29 October 1998 PRESS RELEASE CONVERSION OF GSEC 77 INTO PETROLEUM SERVICE CONTRACT (SC) 42 OVER NW PALAWAN FINALIZED Despite the present financial difficulties companies are experiencing, investors continue to support the petroleum industry in the Philippines. The conversion of Geophysical Survey and Exploration Contract (GSEC) 77 into Petroleum Service Contract (SC) 42 over NW Palawan on 29 October 1998 affirms the continuing confidence of foreign and local investors in the Philippine economy. The SC was signed by and among Energy Secretary Mario V. Tiaoqui and SC 42 Consortium members at PNOC Building in Fort Bonifacio, Taguig, Metro Manila. The SC 42 block covers an area of 1,048,743 hectares in Northwest Palawan (see attached map), which is close to the Malampaya natural gas field. The consortium is headed by Sydney Oil Company Drilling and Exploration Trust Production Pty. Ltd. (SOCDET), which acquired the operatorship last 23 March 1998. The other SC 42 consortium members are Petroz N.L., Novus Petroleum Limited, Complex Energy Corporation, Philippine National Oil Company - Exploration Corporation, Oriental Petroleum & Mineral Corporation, Phoenix Energy Corporation, Basic Consolidated Incorporated, Palawan Oil and Gas Exploration Incorporated, and Trans-Asia Oil and Energy Development Corporation. During the GSEC term, the Consortium reprocessed 750 line-kilometers of seismic data in addition to the 1,079 line-kilometers acquired under the Non-exclusive Geophysical Permit (NGP) term. The consortium also conducted an Extended Production Test (EPT) on Calauit-1B well in May 1997 and drilled Dimipac-1 well last April 1998 at a cost of US$ 7.1 million. Despite the negative result of the Dimipac-1 well, the consortium remains optimistic that it will discover petroleum in the area. The Consortium has also purchased US$ 750,000 of Geco-Prakla 3D seismic data to enhance its database and improve its understanding of the prospectivity of the contract area. The consortium members have committed conduct a 3D seismic survey and to drill at least one well at a cost of at least $5 million or P200 million. This will bring the total investments in the area to about $55 million. Approved by DOE for release
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