Consortium members of Service Contract 55 located in the ultra-deepwater of southwest Palawan plan to drill an appraisal well at a cost of $3 million to explore the oil and gas potential of the area.
Pryce Gases Inc. said in a disclosure to the stock exchange Wednesday that along with a consortium partner, it decided to enter sub-phase 5 of SC 55 which would become effective on Aug. 26.
“This is without prejudice to the consortium exercising its option to enter the appraisal period on or before Aug. 26, 2019,” PGI said.
The company’s entry into sub-phase 5 will mean the drilling of one ultra-deepwater well at the cost of at least $3 million. The ultra-deepwater well will be drilled at water depth beyond 1,500 meters in the second quarter of 2020.
SC 55 is a deep-water block located in the southwest Palawan Basin, covering an area of 9,880 square kilometers. PGI acquired its interest in SC 55 in July 2015 via a farm-in agreement with Otto Energy Philippines Inc., the former operator and ex-consortium partner.