Australian firm Gas2Grid Ltd. is embarking on a three-well exploration drilling program starting September this year, to tap the potential oil and gas resources in Cebu.
In a regulatory filing, Gas2Grid reported that the new wells, which would be drilled within areas covered by Service Contract 44, would test three prospects namely Jacob-1, Gumamela-1 and Ilang-1 to depths of 1,000 to 1,300 meters.
"These prospects vary in size and resource potential of several million barrels with Jacob-1 having an un-risked potential of up to 50 million barrels recoverable oil. All wells have been approved by the Philippine Department of Energy, landholders' approvals have been granted and site preparations and road access are almost complete," the company said.
Gas2Grid plans to complete the three-well drilling program between now and 2014, after it was given an extension by the DoE of up to Jan. 28, 2014. The original deadline was July 28 this year.
"This extension of time will provide plenty of opportunity for the company to complete its work program, although it is the company's intention to complete these works before the end of 2012," the company said.
For its planned drilling program in the Philippines, Gas2Grid was able to purchase recently Rig-2 (800 HP, Gardner Denver 500 SCR) with a capacity to drill to a depth of 2,750 meters. The drilling rig arrived in Cebu from Taiwan in mid-June, several months later than the schedule. Rig-1, or the workover rig, has been undergoing extensive maintenance.
"After the completion of the drilling and workover program, the company will own two good drilling rigs. This will prove extremely beneficial for appraisal and development drilling of oil/gas discoveries using equipment owned and operated by the company.
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