MANILA, Philippines - Despite territorial disputes, UK-based Forum Energy Plc said it had completed its seismic survey at Service Contract (SC) 72 in the Reed Bank basin.
In a report, Forum executive chairman Robin Nicholson said as part of the work program, 564.887 square kilometers of 3D seismic data was acquired over the Sampaguita gas field and 2,202.38 line-kilometers of 2D seismic data was also acquired over the block in order to further define additional leads identified within the SC 72 acreage.
Nicholson said the company will continue to pour in capital for exploration in the area.
“We are delighted to have completed our work program so efficiently and ahead of our anticipated schedule. We have now met our contractual commitments with the Department of Energy under Service Contract 72 and look forward to making further investments into the project,” he said.
Forum Energy had been stressing that SC 72 is not situated in the disputed Spratlys Group of Islands. It said the contract is located in the Reed Bank basin which is at least 150 kilometers east of the disputed Spratlys Island and is closer to the island of Palawan.
It said SC 72 is within the 200-nautical mile exclusive economic zone (EEZ) based on Republic Act 9522 or the Philippine Archipelagic Baseline Law signed on March 10, 2009. RA 9522 defines the archipelagic baselines of the Philippines, while affirming Philippine sovereignty and jurisdiction over these areas, which include SC 72.
Reed Bank has been subject of numerous exploration campaigns in the past. The first petroleum contract in the area was awarded by the then Ministry of Energy in 1975.
Forum (through its 100% interest in Forum Philippine Holdings Ltd and Forum (GSEC101) Ltd). holds a 70% equity interest in the SC 72 license. Philex Mining Corp. (through its interests in FEC Resources Inc. and Philex Petroleum Corp.) controls 64.45% of the share capital of Forum.
Philex provided a financing facility worth $10 million that enabled Forum to progress the development of SC 72.
In its report, Forum said it will immediately begin processing the data with the aim of further evaluating the commercial potential of the block, and to help identify the best location for possible appraisal wells to be drilled in the next sub-phase of the SC 72 license.
MANILA, Philippines - Forum Energy Plc. of the United Kingdom is ready to put up additional investments in its Sampaguita gas discovery off West Palawan after completing the seismic survey in the area ahead of schedule.
“We have now met our contractual commitments with the Energy Department under Service Contract [SC] 72 and we look forward to making further investments into the project,” Robin Nicholson, Forum executive chairman, said.
Nicholson said they have been going about the work program in SC 72 “efficiently and ahead of our anticipated schedule.”
The company initially projected to complete the survey at the end of the first quarter. It completed the survey in the middle of March.
Forum acquired 564.887 kilometer of 3D seismic data over the Sampaguita gas field and 2,202.38 line-kilometer of 2D seismic data as part of its work program in order to further define drilling areas within the SC 72 acreage.
“The company will immediately begin processing the data with the aim of further evaluating the commercial potential of the block, and to help identify the best location for possible appraisal wells to be drilled in the next subphase of the SC 72 license,” Nicholson said.
CGG Veritas, using the MV Veritas Voyager carried out the seismic survey.
A previous 248-square- kilometer 3D seismic survey over the SC 72 license area indicated a 3.4-trillion-cubic-feet gas-in-place at the Sampaguita gas discovery, an 8,800-km license area located approximately 100 km off West Palawan in the South China Sea.
SC 72 is located in the Reed Bank basin, at least 150 km east of the disputed Spratlys Island, but is closer to the island of Palawan.
Nicholson said Forum also “progressed discussions with potential strategic partners” for SC 72.
Forum, through its 100% interest in Forum Philippine Holdings Ltd. and Forum (GSEC101) Ltd., holds a 70% equity interest in the SC72 license. Philex Mining Corp. (through FEC Resources Inc. and Philex Petroleum Corp.) controls 64.45% of Forum. Philex provided a financing facility of $10 million that enabled Forum to develop SC 72