MANILA, Philippines - Otto Energy Ltd., one of the biggest oil and gas exploration firms in Australia, has started the seismic data acquisition program in Service Contract (SC) 69 in the Visayan basin.
In a report, Otto managing director Paul Moore said the seismic vessel BGP Explorer has been contracted to record the seismic data.
Based on the plan, Otto will acquire approximately 210 square kilometer of 3D seismic data in SC 69, which covers an area of 5,280 square kilometers in the Central Visayan basin where the data acquired from the successful 2D seismic campaign last year confirmed the presence of two sizeable reef structures, Lampos and Lampos South.
“Current success case estimates of oil initially in place in the combined structures range between 22 million barrels (mbbls) and 713 mmbbls with a mean in place volume of 290 mmbbls,” Moore said.
“The ongoing exploration program in the Visayan region of the Philippines is a core part of Otto’s exploration program with the 3D seismic currently being acquired ahead of the drilling obligation in the next sub-phase,” he added.
Otto’s local subsidiary NorAsian Energy Philippines Inc. owns majority of SC 69 while Trans-Asia Oil and Energy Development Corp. owns 30 percent.
In a separate report submitted to the Philippine Stock Exchange, Trans-Asia said they expect the survey to be completed within the next 18 days.
In 2008, the Department of Energy awarded SC 69 to the consortium.
The area, according to previous studies, recorded more than 20 structures with potential for both oil and gas.
The service contract covers an area of 7,040 square kilometers in offshore Central Visayas surrounded by the islands of Cebu, Bohol and Leyte.
The consortium plans to acquire seismic data and drill a well at a cost of $11.2 million over the seven-year work program.
Earlier, Otto Energy increased its equity in SC 69 to 79 percent from only nine percent in exchange for the payment of TA Oil’s previous costs and equity share in the drilling of an exploration well in the exploration block.
TA Oil, a subsidiary of the Phinma group, is primarily into conventional fuel-based power generation, petroleum exploration and production, mining and retail electricity trading.