• DOE : SC 37 gas not of commercial volume

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    STATE-RUN Philippine National Oil Co.-Exploration Corp. (PNOC-EC) confirmed the discovery of gas in the in Cagayan Basin covered by Service Contract (SC) 37, but the volume was not commercially feasible.

    The PNOC-EC was unable to flow gas in commercial volumes from the Mangosteen-1 well, the Department of Energy’s (DOE) Energy Resources Development Bureau (ERDB) said on Thursday.

    Gas flowed and the PNOC-EC was able to flare the gas accumulated in the separator.

    “The gas that flowed out the Mangosteen-1 well… only confirmed the discovery of gas in the area,” the DOE said.

    More tests are needed for more accurate estimates of the volume, optimal flow rate and other relevant reservoir properties and if the find will eventually confirm the commercial viability of the prospect, the Energy Department said.

    Awarded by the DOE to PNOC-EC in 1990, SC 37 covers 2,200 square kilometers in onshore Cagayan Basin that straddles the provinces of Isabela and Quirino and the City of Santiago.

    SC 37 was eventually reduced to the 360 sq km that covers the production area.

    Cagayan Basin is one of the 16 sedimentary basins in the Philippines estimated to have a potential unmapped resource of gas and oil.

    The notable accomplishment of PNOC-EC in SC 37 is the commercial operation of the San Antonio Gas Field in 1994, the country’s first commercial source of natural gas that supplied the San Antonio Gas Power Plant and powered more than 10,000 households in Isabela. The gas reserves were exhausted in 2008.

    Based on a study commissioned by PNOC-EC, the Mangosteen Prospect has an estimated recoverable resource potential of about 71 billion cubic feet (BCF) of gas, a significantly higher estimate compared to the 4 BCF of the San Antonio Gas Field.

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