Sydney based firm Gas2Grid Limited said “that it has received the approval of the Philippine Department of Energy of an application to declare Malolos-1 an oil discovery, under the terms and conditions of the Service Contract.”
With this, “the Company has been issued a 12 month extension to Service Contract (SC) 44 in order to conduct test oil production with the aim of establishing a commercial oil field.”
The firm will be able to enter oil sales from test production during the 12-month extension. “Successful longer term oil testing will enable the Philippine DOE to approve Malolos as a commercial oil field and allow production from the retained areas of SC 44 for a period of 25 years,” the firm said.
Gas2Grid sees the development as “a big step forward in developing the oil field.”
“Initial assessment of the oil volume potential within the Malolos oil field is a Contingent Resource oil in place in the two oil productive sandstones in the range of between a Low Estimate of 4 million barrels and a High Estimate of 42 million barrels, with a Best Estimate of 12 million barrels of Total Oil Initially in Place,” the firm added.