Gas2Grid announced that in June, the Company successfully perforated and flow tested two oil bearing sandstones at depths of 7,280-7,308 feet (2,219-2,227.5 meters) and 7,152-7,207 feet (2,178-2,195.4 meters) at the Malolos-1 field in Service Contract (SC) 44 onshore Cebu, Philippines. Oil was produced on short term test and the results have now been integrated with all other available technical data.
Our interpretation of these data is that the two oil bearing sandstones have only been tested within the eastern limb of the Malolos anticline where they are steeply dipping. Previously drilled wells Malolos-1 and Malolos-4 record oil bearing sandstones over a 1,627 feet (496 meter) vertical interval. On that basis we consider that further evaluation of the Malolos faulted anticline could result in a much larger Malolos oil field than currently assessed.
Initial assessment of the oil volume potential within the Malolos oil field is a “Contingent Resource” in the two oil productive sandstones in the range of between a “Low Estimate” (1C) of 4 million barrels and a “High Estimate” (3C) of 42 million barrels, with a “Best Estimate” (2C) of 12 million barrels of “Total Oil Initially in Place”.
Recent technical work indicates that oil bearing sandstones have been intersected over a 1,627 feet (496 meters) vertical interval in Malolos-1 & 4 wells. If the oil bearing reservoirs are continuous between the two wells then Malolos could be a very large oil field. At this stage the Malolos oil field warrants appraisal by further oil testing, seismic acquisition and drilling.
The Company plans to commence new operations with an extended production test of both Malolos oil reservoirs before the acquisition of seismic data and the drilling of new wells.
The Company’s preferred funding for the complete appraisal and development work is by a farmout of SC 44 by reducing its current 100 percent interest. In the short term, the Company will also pursue other fund raising options to promptly commence the appraisal work.
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