Gas2Grid Limited disclosed Wednesday that an independent assessment of the “Unrisked Prospective Resource”* within newly identified prospective leads within Service Contract 44 (SC 44) in Cebu, Philippines calculates recoverable oil in the range of 14 million barrels (Low Estimate) to 601 million barrels (High Estimate) with a Best Estimate of 104 million barrels. This new resource is in the vicinity of the Malolos Oil Field and in addition to the “Contingent Resource” previously announced.
In the Malolos Oil Field, the “Contingent Resource” of oil in place in two productive sandstones has now been re-assessed upwards to be between 6.8 million barrels (Low Estimate “1C”) and 68.1 million barrels (High Estimate “3C”), with a Best Estimate “2C” of 20.4 million barrels of “Total Oil Initially in Place”.
In June 2013, the Company had reported a “Contingent Resource” of the Malolos Oil Field of between 4 million barrels (Low Estimate “1C”) and 42 million barrels (High Estimate “3C”), with a Best Estimate “2C” of 12 million barrels of “Total Oil Initially in Place”.
SC 44 is located onshore Cebu in the Philippines and the Philippines Department of Energy, recognizing the oil discovery declared at Malolos, has this month granted an extension of 12 months to carry out production flow tests to confirm commerciality of the field.
The independently assessed “Unrisked Prospective Resource” and “Contingent Resource” indicate the magnitude of oil resources targeted within SC 44 and their potential impact on the value of the Company.
The new prospective leads have been identified using a combination of available seismic data, satellite imagery and mapping of surface geology. The calculations have been made in accordance with Clause 7.3 of ASX Guidance Note 32.
Discussions are progressing with interested parties for funding the complete appraisal and development work at the Malolos Oil Field by a farmout of SC 44, reducing the Company’s current 100 percent interest, subject to reasonable terms.
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