MANILA, Philippines - Australian oil exploration firm Tap Oil Ltd. said yesterday it had relinquished an exploration block in the Sulu Sea in southern Philippines.
In a report, Tap Oil said it has not seen much prospects in continuing its efforts to explore Service contract 41.
“It was concluded that a well was not appropriate at this time and thus Tap elected to relinquish the service contract,” company CEO Peter Stickland said.
He said the company seeks to manage its exploration investments in a rigorous and disciplined manner.
The next phase of the service contract would have included a work program commitment to drill an exploratory well by May 2011.
“In 2009 Tap identified two projects, the Zola prospect in WA-290-P and SC-41, where a farmout was necessary before Tap would commit to drilling,” Stickland said.
“In the second quarter, Tap farmed out the Zola gas prospect, which has enabled the acceleration of the drilling of this well. “In SC-41, Tap was not able to secure an appropriate farmout due in part to the tight timeframe of the work program,” he added.
The Tap Oil official clarified that the decision to relinquish the project came prior to the drilling of a well in the area.
“Consequently, Tap has made the decision to relinquish SC-41 prior to incurring the well commitment,” he pointed out.
“Tap Oil views the area as having some prospectivity and may pursue exploration here in the future with an appropriate work program to address the technical risks,” Stickland stressed.
While abandoning the Sulu Sea project, Tap Oil is continuing its extensive exploration program including near term drilling in Brunei and Australia’s Carnarvon and Bass Basins, he said.