Phinma Petroleum and Geothermal (PPG), in a Philippines Stock Exchange (PSE) disclosure, said that its subsidiary Palawan55 Exploration & Production Corporation (Palawan55), “is entering into the 5th sub-phase of Service Contract No. 55 (SC55), which covers a deepwater exploration block off southwest Palawan, effective 26 August 2019.”
It added that the Department of Energy (DOE) was notified today, July 24.
“This is without prejudice to Palawan55’s option to enter the Appraisal Period of SC55 no later than the said date,” it noted.
“Palawan55 is the Operator of SC55 and owns a 37.5% participating interest. The 5th sub-phase carries a commitment to drill one ultradeepwater (water depth beyond 1,500 meters) well in the second quarter of 2020,” PPG said.
PPG said that in 2015, the SC55 Consortium drilled the Hawkeye-1 well in 1,700 meters of water at a cost of US$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,” it explained.
“Palawan55 is currently 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,” it added.