PXP Energy Corp., a unit of Philex Mining Corp., is reviewing two prospects in Service Contract 72 (Recto Bank) that have an estimated gas potential of over 5 trillion cubic feet.
“SC 72 or Recto Bank is the site of the Sampaguita gas field which is estimated to contain about 2.6 trillion cubic feet of contingent gas resources. It has a total area of 8,800 square km,” PXP Energy president Daniel Stephen Carlos said during a virtual stockholders’ meeting early this week.
Carlos said while SC 72 was still under force majeure because of the territorial dispute with China, PXP Energy completed in July last year the processing of the Sampaguita 3D data set to further improve its quality using modern technology, such as broadband pre-stack depth migration.
This was followed by the interpretation of the seismic data and the formulation of a drilling program on the Sampaguita field to determine the optimum location of future appraisal wells.
“These wells will be drilled once we get permission from the government to resume exploration activities in the block. In addition to the drilling program, we also intend to perform further work on the North Bank prospect, which is located 70km northest of Sampaguita,” Carlos said.
He said once the moratorium on SC 72 was lifted, PXP Energy’s immediate plan for North Bank was to conduct a 2,000 sq. m. 3D seismic survey to further evaluate the prospect, which could eventually lead to a drilling on an exploratory well.
“The North Bank is estimated to contain 3 trillion cubic feet of prospective gas resources,” Carlos said.
Prospective resources are estimated quantities of petroleum potentially recoverable from undiscovered accumulations, while contingent resources are those quantities of petroleum which are estimated to be potentially recoverable, but which are not currently considered to be commercially recoverable.
“We remain optimistic that the continued talks between the Philippines and China on the West Philippines issue will eventually lead to an agreement that will allow us to resume exploration activities in our highly prospective SC 72 and SC 75 blocks,” Carlos said.
He said PXP Energy remained committed to advance exploration efforts in its other service contracts such has SC 75 and 74 both in northwest Palawan and SC 40 in northern Cebu.