Philippines Partners Choose to Drill
Friday 21 October 2016
The joint venture owners of the Galoc offshore oilfield in the Philippines have elected to drill a new appraisal well in early 2017 as a precursor to the phase three field development.
The majority owner Nido Petroleum unveiled the plan today, adding that it intends to raise up to A$31.9 million (US$24.6 million) through an 11.2 for 1 pro-rata renounceable entitlement offer of new shares at A$0.065 per new share.
The Galoc‐7/7ST well will appraise the currently untested Galoc Mid Area in Block C1 of Service Contract 14.
If the well is successful, the subsequent phase three development "will materially increase reserves and production, substantially extending the life of the Galoc field", said Nido.
Nido owns a 55.8% interest in the Galoc oilfield, which in the three months ended 30 September 2016 produced at a gross average rate of 5079 barrels per day of oil.
However, production is in decline and, based on Nido’s proven reserve estimates, is anticipated to become sub-commercial in 2019.
A successful development of the Mid Area will potentially extend the Galoc field until the first quarter of 2027 based on current forecasts.
The phase three development would notionally include one or two horizontal wells tied back to the existing FPSO Rubicon Intrepid via subsea flowlines and umbilicals.
The joint venture comprises Nido (55.88%), Kuwait Foreign Petroleum Exploration Company (26.85%), Oriental Petroleum & Minerals Corporation and Linapacan Oil Gas & Power Corporation (7.78%), Philodrill Corporation (7.22%) and Forum Energy (2.27%).