EDC chairman and president Sergio Apostol told The STAR that the group has been in constant talks with EDC since late last year. "We have been negotiating with the group since November to December last year," he said.
Apostol said they hope to sign a memorandum of understanding (MOU) with the British exploration consortium soon.
"They were aware that the Victoria 3 well’s gas find is not commercially viable. They are willing to explore other areas within that service contract," Apostol said.
According to him, they will also inform the group that they are exploring other areas aside from the Central Luzon as potential site for natural gas reserves.
"We have been looking for other potential areas such as in Mindanao, Leyte and Palawan," he said.
The consortium, including EDC, which is developing the gas potential in Victoria, Tarlac decided to abandon the Victoria 3 drilling project after hitting a water reservoir under the well.
EDC owns 85 percent of the project while the remaining 15 percent belongs to PNOC-Exploration Corp. share. Both are subsidiaries of the state-owned Philippine National Oil Co. (PNOC).
The consortium, however, said it would continue drilling more wells in the area, especially now that they have already seen a proof that gas could flow in that basin. The group spends some $4.8 million per well.
"There is gas reserves in the area but we only have to find a much better flooring than Victoria 3 well," Ismael Ocampo, head of the Oil and Gas Division of Department of Energy, said.
The Victoria drilling project, which is part of Geophysical Survey Exploration Contract No. 75, was drilled to a total depth of 9,000 feet until it hit a water reservoir.