Mitra Energy Inc. of Malaysia is upbeat on developing the Dabakan and Palendag prospects in the deepwaters of South Sulu Sea under service contract 56.
The prospects could contain nearly 30 million barrels of oil and around 2.5 trillion cubic feet of gas on a high estimate, according to a recent contingent resource assessment.
Mitra said the recent estimate report was conducted by Lloyds Register Senergy, an independent reserves evaluator.
Mitra, which owns a a 25-percent stake in service contract 56 covering the two prospects, said the reserves as of a given date were potentially recoverable.
Total E&P Philippines B.V. owns 75 percent of SC 56.
The Dabakan and Palendag prospects were found to have a high potential of 1.666 trillion and 838 billion cubic feet of gas on a high estimate, respectively.
They have a best estimate potential of 367 billion cubic feet for Dabakan and 207 billion cubic feet for Palendag and a low estimate of 125 million cubic feet for Dabakan and 96 billion cubic feet for Palendag.
Mitra said based on the resource assessment report, the Dabakan prospect was estimated to contain a low, best and high potential of 1.1 million, 4.1 and 20.3 million barrels of oil.
The Palendag prospect, meanwhile, is estimated to contain, 700,000 barrels, 2 million barrels and 8.5 million barrels of oil, respectively.
“In addition to the discovered gas fields on SC 56, a portfolio of exploration prospects has been identified. Total is planning an exploration well on the key Halcon prospect [expected to be drilled in 2017], for which Total will carry Mitra’s 25 percent interest up to a gross well cost of $75 million,” Mitra said.
The gross prospective resources for the Halcon prospect are 6.736 trillion cubic feet and 169 million barrels of condensates.
Mitra said discovered and future gas resources were expected to be either sold via pipeline to Sabah, Malaysia or to a liquefied natural gas off-taker, probably through a floating liquefied natural gas facility to be operated by Total.
Four wells were earlier drilled by operator Exxon on SC 56, resulting in the Dabakan and Palendag discoveries.
Exxon did notpursue further development in 2011 claiming the reserves were non-commercial in quantity.
Total farmed into SC 56 in September 2012 and assumed a 75-percent interest, with Mitra remaining as operator.
On August 28, 2014, Total formally confirmed its intention to drill an exploration well on the Halcon prospect.
The Energy Department last year approved an exploration period extension of five years from August 31, 2015, resulting in an exploration period until September 1, 2020.
Total officials earlier said studies were being undertaken as part of the preparations for the exploratory drilling, which will herald Total’s re-entry into the Philippines’ oil and gas exploration industry.