PhilOil to Start Exploration of Philippine Oil Field
Philippines Royal Oil & Alternative Energy Co., Inc. (PhilOil) reports its certification from the Philippines Department of Energy was confirmed and registered on December 28, 2007, Philippines SEC Registration No. CS200720015.
PhilOil has signed a memorandum of agreement for a joint venture, according to the terms of which PhilOil will begin in 2008 exploration, development and mining of an oil field in Southern Mindanao, Philippines. The oilfield has a daily plant capacity of 100,000 barrels of crude oil and 250,000 cu.ft. of natural gas. Return On Investment of this project is 68.4% with a payback period of 10 years. The total fixed capital investment cost of the project is estimated at US $385 million.
PhilOil also expects to commence formal investigation of a natural gas deposit that it has identified for exploration and development in Paracelis, Mountain Province, Philippines. Investigation is expected to commence during the first part of 2008.
A Memorandum of Agreement that the company has executed with the Redobles Family in anticipation of a formal agreement sets forth the terms under which PhilOil will explore, develop and mine an oil field to begin during the first quarter of 2008.