DOE to approve 3 exploration pacts

The Department of Energy (DOE) is set to approve three more applications under a geophysical survey and exploration contract (GSEC) within this quarter, DOE oil and gas division chief Ismael U. Ocampo said over the weekend.

"We are evaluating the applications of Australia-based Hardman Resources and Exploration Corp. and Trans-Asia Oil Exploration Corp.," Ocampo said.

Ocampo said Hardman is taking over the natural gas exploration project in Cagayan Basin, Cagayan Valley of former operator Pan Continental Oil and Gas, another Australian firm.

Pan Continental applied for the GSEC, which has an exploration area of 752,000 hectares, last January 2000. However, the project was not completed because Pan Continental suffered financial problems last year.

Based on DOE criteria, an exploration company should have at least good financial standing for the last three years before its application is approved.

"We are still evaluating the application of Hardman. It normally takes us one month to study the exploration project application. But there are some delays. We expect to approve it soon," Ocampo said.

Another GSEC application being evaluated by DOE, according to Ocampo, was Trans-Asia Oil Exploration Corp.’s request to explore the 984,000-hectare Bancauan Basin in Sulu Sea. The application was submitted last May 2000.

The other applicant was Pacrim Energy N.L. for a right to explore the 208,000-hectare Offshore South Cebu. Its application was submitted on Jan. 8, 2001.

According to Ocampo, these applications are significant since one of the oil wells in Northern Palawan, Nido Petroleum, is digging out of less oil every day.

Nido, operated by Alcorn Petroleum Corp., is producing only 1,000 barrels of oil per day (BOPD). The Nido project started in 1979.

Ocampo explained that a well normally has a life span of 20 years. "This is the reason why, the Nido well is producing less oil," he said.

DOE data showed that the existing mine GSECs have been either expired or will expire this year and next year.