Gas2Grid's Operations in SC 44 in Cebu Not Affected by Typhoon Haiyan

Gas2Grid Limited revealed Tuesday that there is no damage caused by Typhoon Haiyan to its sites and installed equipment within Service Contract (SC) 44, Cebu, Philippines.

The path of typhoon Haiyan passed across the northern end of Cebu Island about 93 miles (150 kilometers) north of the Malolos location in SC 44 where the company owned drilling rigs are stored. Heavy rain and strong winds were experienced but no substantial damage has been sustained in the immediate area around Malolos.

Gas2Grid is proceeding with the plan of flow testing the Malolos-1 well for a longer period in order to establish commercial production. A beam pump and an oil storage tank are being sourced while awaiting approval of Department of Energy (DOE) for the field testing to recommence, expected in early 2014.

The extended production test will involve separately placing each of the two oil bearing sandstones within Malolos-1 on extended pump test for a minimum period of three weeks each (production time may be extended depending on results). The production period will be followed by a shut-in period to assess the reservoir pressure build-up and the results will enable determination of reservoir quality, condition and a better assessment of the size of the oil reservoir.

The Company is concurrently progressing discussions with interested parties for funding the complete appraisal and development work at the Malolos Oil Field by a farmout of SC 44, reducing its current 100 percent interest, subject to reasonable terms.