ASEAN KEY DESTINATIONS
Philippine block positive for gas
In a regulatory filing, the Australian firm said that initial geochemical analysis confirmed the presence of liquid hydrocarbons, the building blocks of petroleum resources, in the subsurface structure of Service Contract (SC) 58-similar to the source of the Malampaya field, the country's largest natural gas producer to date.
"SC 58 can now be considered as viable source systems to charge the large Balyena, Butanding and Dorado prospects mapped in the block. This is a very exciting development. Not only are individual prospect probability of success improved, but it highlights the substantial upside in the SC 58 deepwater fairway," Jon Patillo, Nido exploration head, said.
SC 58 is located in the deep waters of Northwest Palawan covering an area of 13,440 square kilometers.
Nido earlier estimated that the structures in this permit have the potential to contain over five billion barrels of oil.
In April, the oil and gas firm found traces of liquid hydrocarbons detected in cores acquired during a multi-beam and deepwater sea-bed coring project in the exploration block.
With the confirmation of its findings, Nido plans to focus its exploration program in the area on full integration of geochemical results with ongoing seismic reprocessing studies aimed at detailing the extent of the source rock systems within the block.
"This work will conclude in early 2011 following final risking/ranking of the prospect inventory and the selection of drilling candidates," Jocot de Dios, Nido president and chief executive officer, said.
The exploration block is run by Nido, which has a 50 percent stake, together with state-controlled Philippine National Oil Co.-Exploration Corp., which holds the remaining interest in the contract.
The joint venture earlier planned to start drilling activities in SC 58 by 2012.
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