ExxonMobil Unit Hits Paydirt in Offshore Philippine Prospect

MANILA (Dow Jones), Dec. 1, 2009

A Philippine affiliate of Exxon Mobil Corp. said Tuesday it found hydrocarbons while drilling on the Dabakan offshore prospect in the southern Philippines.

"Logs taken at the Dabakan-1 well indicate that we encountered reservoir sands and hydrocarbons," Ian Fisher, managing director of ExxonMobil Exploration and Production Philippines BV, told reporters at the sidelines of a business forum.

"The well will be drilled further to a total depth of approximately 5,000 meters, setting the record for the deepest well drilled in the Philippines."

Fisher said ExxonMobil Exploration plans to drill a second well in the next few weeks even as the company assess the results of drilling on first well in Dabakan.

Around $100 million has been budgeted to drill one well.

ExxonMobil Exploration is the operator of Service Contract 56, which covers the Dabakan prospect. Mitra energy Ltd. and BHP Billiton Petroleum (International Exploration) Pty Ltd each hold 25% of the service contract.  

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