The Philippines Oil Field Exploration Investment in Palawan.
The UK-based Forum Energy Plc said it had completed its seismic survey at Service Contract (SC) 72 in the Reed Bank basin.
In a report, Forum executive chairman Robin Nicholson said as part of the work program, 564.887 square kilometers of 3D seismic data was acquired over the Sampaguita gas field and 2,202.38 line-kilometers of 2D seismic data was also acquired over the block in order to further define additional leads identified within the SC 72 acreage.
Nicholson said the company will continue to pour in capital for exploration in the area.
“We are delighted to have completed our work program so efficiently and ahead of our anticipated schedule. We have now met our contractual commitments with the Department of Energy under Service Contract 72 and look forward to making further investments into the project,” he said.
Forum Energy had been stressing that SC 72 is not situated in the disputed Spratlys Group of Islands. It said the contract is located in the Reed Bank basin which is at least 150 kilometers east of the disputed Spratlys Island and is closer to the island of Palawan.
It said SC 72 is within the 200-nautical mile exclusive economic zone (EEZ) based on Republic Act 9522 or the Philippine Archipelagic Baseline Law signed on March 10, 2009. RA 9522 defines the archipelagic baselines of the Philippines, while affirming Philippine sovereignty and jurisdiction over these areas, which include SC 72.
Reed Bank has been subject of numerous exploration campaigns in the past. The first petroleum contract in the area was awarded by the then Ministry of Energy in 1975.
Forum (through its 100-percent interest in Forum Philippine Holdings Ltd and Forum (GSEC101) Ltd). holds a 70-percent equity interest in the SC 72 license. Philex Mining Corp. (through its interests in FEC Resources Inc. and Philex Petroleum Corp.) controls 64.45 percent of the share capital of Forum.
Philex provided a financing facility worth $10 million that enabled Forum to progress the development of SC 72.
In its report, Forum said it will immediately begin processing the data with the aim of further evaluating the commercial potential of the block, and to help identify the best location for possible appraisal wells to be drilled in the next sub-phase of the SC 72 license.
