Gas2Grid to Ask DOE to Declare Malolos in SC44 a Commercial Oil Field

Dennis Morton (Managing Director) commented:

“The Company has proved that the two targeted sandstones are oil saturated with commercial potential but affected by down-hole mechanical issues. These two oil sandstones have 21.4 million barrels of Best Estimate (2C) Likely Contingent Resource of Oil in Place (Low Estimate 6.8 and High Estimate 68.1 million barrels). This is a resource well worth pursuing.

We are working in a well that was drilled and cased over 50 years ago and that in itself limits our current options. We decided to test the well because it was the lower cost option, as opposed to deepening the Nuevo Malolos-1 well, which still remains an option. We have now determined that sand and migration of fines is an issue with the perforated casing completion and that going forward we will require an alternative completion technology (screens or gravel pack) to manage the fines production. These are standard industry completion techniques.

The forward plan will likely include application to the Philippine Department of Energy for the declaration of Malolos as a commercial oil field and a production period to allow field appraisal and development. The Company will also re-engage with potential farminees in order to fund the appraisal and development of the Malolos Oil field.”