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Gas2Grid given two years to find partners and bring Malolos-1 online in Philippines

12th December 2014

The Philippine Department of Energy has approved an application, submitted by Gas2Grid Limited, for a two-year technical moratorium of Service Contract 44 (SC 44) to establish the best completion technology and fully appraise the Malolos Oil Field onshore Philippines

Gas2Grid given two years to find partners and bring Malolos-1 online in Philippines
Gas2Grid has identified the various procedures available in the oil industry and will now commence preparation for implementation. Source: Gas2Grid

The technical moratorium, which runs from 28 January 2015 to 28 January 2017, gives Gas2Grid ample time to determine the development of the Malolos Oil Field with the aim to eventually be granted a 25-year production licence.

Significant oil production rates at equivalent of 200 barrels per day were achieved in the Malolos-1 well during short periods of production tests in the first half of this calendar year, but the flow was inhibited by sand blocking the perforations downhole.

This production engineering issue, which is quite common, can be overcome by applying different well completion methods.

Gas2Grid has identified the various procedures available in the oil industry and will now commence preparation for implementation.

The company has been pursuing farmout of SC 44 in order to fund the field appraisal and development as the preferred form of funding.

The grant of the two-year technical moratorium provides the security of tenure for potential farm-in partners to proceed further in their interests to participate.

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