MANILA, Philippines - Preparatory works for a $5-million oil exploration project in Cagayan Valley is already under way, an official of the Department of Energy (DOE) said.
Stakeholders of Service Contract (SC) 52 are already conducting a flow test as part of the drilling works at the Nassiping-2 well, DOE Assistant Secretary Ramon Allan V. Oca said.
“They have reached the target depth and they are expected to start the flow test,” he said.
The exploratory drilling began on Feb. 8 and reached a depth target of 3,014.4 meters on Feb. 11.
The SC 52 consortium is composed of Australia’s Frontier Gasfields Pty. Ltd. which has a 30 percent stake, Frontier Oil Corp. (50 percent) and E.F. Durkee & Associates (20 percent).
The group expects a well flow test for the Nassiping-2 this weekend. The test will aid the firms in determining the well design and equipment needed to develop the oil and gas reserves in the area.
SC 52 covers 96,000 hectares in Piat-San Jose in northern Cagayan Valley. The Nassiping-2 is an existing well containing a previously discovered but untested gas discovery. It was drilled in 1984 and penetrated a substantial, gas-bearing limestone section but was not flow-tested.
“The well test duration will be dependent upon results,” Frontier Gasfields said.
Frontier Gasfields and locally listed Trans-Asia Oil and Energy Development Corp. earlier signed a farm-in option agreement for SC 52 wherein Trans-Asia has the option to acquire 10 percent of the block upon payment of an agreed amount.