Philippine DOE Recognizes Malolos-1 in SC44 as an Oil Discovery

Dennis Morton (managing director) had the following comments:

“The Department of Energy’s recognition of Malolos-1 as an oil discovery is not only the first time the oil field has been independently certified as an oil discovery but importantly it provides a 12 month extension of SC 44 in order to produce oil with the aim of establishing field commerciality. Funds raised by the sale of oil during the test production period will generate revenue to fund additional SC 44 operations. Successful longer term oil testing will enable the DOE to approve Malolos as a commercial oil field and allow oil production from the retained areas of Service Contract 44 for a period of 25 years.

The DOE approval is a giant step forward in developing the oil field. Numerous other surface anticlines, adjacent to the Malolos oil field also warrant evaluation. Gas2Grid has confidence that the oil discovery is significant and worthy of further testing and evaluation to transform the Company from explorer to producer and to benefit all shareholders.”

The Malolos anticline has at least 1,640 feet (500 meters) of indicative vertical closure, it covers a large area and therefore it holds potential for a very large oil accumulation. The Malolos oil field can be cost effectively assessed, as it is located onshore and very close to facilities. It is now a high priority to appraise the Malolos oil field and actively explore the surrounding surface anticlines, which are also very attractive exploration targets. We also have the knowledge that oil fields discoveries have previously been made within sandstone reservoirs trapped in similar types of anticlines, immediately to the north and south of SC 44.”


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