Australia-based Otto Energy Ltd. (Otto) has requested the Department of Energy (DOE) for a two-year moratorium on exploration under Service Contract 55 (SC 55), which the company operates.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday,
Trans-Asia Petroleum Corp. (Tapet) said the SC 55 consortium fulfilled the work obligation under the current exploration Sub-Phase by drilling the Hawkeye-1 exploratory well in August.
Tapet’s subsidiary, Palawan55 Exploration and Production Corporation, holds 6.82 percent participating interest in SC 55.
“Although the well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system in the contract area, which hosts Cinco and several other prospects and leads,” said Tapet, the exploration arm of the conglomerate Phinma Group.
SC 55 is located near the Malampaya gas field in offshore Palawan and also includes the Cinco well.
It is a deep-water block located in the southwest Palawan Basin, covering an area of 9,880 square kilometers.
The block is in the middle of a proven regional oil and gas fairway that extends from Borneo offshore region in the southwest, to the offshore Philippine production assets northwest of Palawan.
In terms of potential resource, the DOE estimates that SC 55 contains 2.2 trillion cubic feet of gas.
According to Otto, SC55 contains a number of distinct exploration play types including the Hawkeye turbidite clastic prospect and the material Cinco carbonate gas/condensate prospect, as well as a number of follow-up leads.
The service contract was awarded to Otto Energy in 2005, shortly after Otto Energy’s listing on the Asutralian Securities Exchange (ASX) in 2004.
The Hawkeye prospect was identified on 2D seismic originally acquired by Otto in 2007 and further defined with the 600 km 3D seismic acquisition in late 2009.
Otto has conducted a successful farm-out process, introducing Red Emperor Resources as a 15-percent joint venture partner in SC 55, with PNOC expressing interest in another 15-percent interest.