EXPLORATORY drilling at the Hawkeye-1 well offshore Southwest Palawan yielded a disappointing result, according to Australia-listed Otto Energy Ltd. (Otto), operator of Petroleum Service Contract 55 where the well is located.
Matthew Allen, Otto’s managing director and CEO, said the Hawkeye-1 exploration well has proven the existence of hydrocarbons in SC55 but the hydrocarbon size was at the “very low end” of expectations, unsuitable for commercial development.
“Hydrocarbons were logged between 2,710 meters and 2,737 meters in reservoir of variable quality and cutting returns provided indications of fluorescence, usually an indicator of liquid hydrocarbons,” said Otto.
Otto has already informed Palawan55 Exploration & Production Corp., a subsidiary of Trans-Asia Petroleum Corp., of the result. Palawan55 holds a 6.82 percent interest in SC 55.
Otto said the well was drilled to its final total depth of 2,920 meters. Fluorescence, which usually indicates oil, was observed in drill cutting returns obtained from the same depth interval.
According to log interpretation, the rock sequence below 2,737 meters contained good quality reservoirs which are water-saturated.
Otto, which is fully carried on the cost of drilling Hawkeye-1, said the drilling program has been executed smoothly, ahead of schedule and ahead of budget.
The Australian oil and gas firm said the results from the well will now be analyzed with respect to other prospects, including Cinco which is also in SC 55, and Hawkeye-1 will then be plugged and abandoned.