MANILA, Philippines - Frontier Oil Corp. is on track with its drilling program in Cagayan Valley.
The oil and gas company has entered into a Letter of Intent with EMAS Energy Services (Thailand) Ltd. (Emas) for the procurement of the latter’s Lewek Explorer 600 drilling rig now stationed at Satahip Port, Thailand.
The rig, which is due to mobilize from Satahip Port to Port Irene on December 1, will be used in the re-entry program for the Nassipping 2 well, which is covered by Frontier Oil’s service contract 52.
According to the company’s work program, it plans to commence acid stimulation and flow testing operations before the end of 2013, with an aim to transform Frontier Oil from a gas explorer to producer.
Officials said this bodes well for the company, which is set to do a public offering on December 9.
“The Nassipping 2 re-entry program represents the second drilling activity by Frontier Oil on the block, following a previous re-entry program in February, 2012 through which the presence of gas was identified and up to 110,000 cubic feet per day was flowed,†Frontier said.
It was in 1984 when PNOC-Exploration Corp. first discovered the oil field.
Frontier said the presence of commercial quantities of gas is proven in the Cagayan Basin, as evidenced by the San Antonio Field in Isabela, located around 160 km south of Nassiping 2. This field, which was operated by PNOC-EC, produced 3.5 billion cubic feet of gas and was used to fire a power-generating unit.
“With SC 52 being located merely 700 meters from the National Power Grid, it is Frontier Oil’s intention to harness gas from the field in a similar manner, if proven commercial.