Philex Petroleum reports 'encouraging flow rates'

MANILA, Philippines - Philex Petroleum Corp. has reported “encouraging hydrocarbon flow rates” in the Ca Rong Do (Red Emperor) well in offshore Vietnam.

Pitkin Petroleum Plc, where Philex Petroleum holds a 21-percent interest, is undertaking the Vietnam drilling.

The report indicated that the first and second zone flowed gas and condensate. “The well will now be sidetracked to further evaluate the distribution of hydrocarbons in the Miocene sands,” Philex Petroleum added.

Premier Oil Vietnam South BV, which has a 30 percent stake in the Ca Rong Do well, issued a similar report stating that the hydrocarbon flow rates “provide further exploration upside across the area.”

“We look forward to the result of the sidetrack well which will provide additional data to determine the hydrocarbon distribution in this part of the Ca Rong Do structure,” Simon Lockett, Premier Oil Vietnam chief executive officer, said.

The other members of the offshore Vietnam drilling operations are PearlOil (Ophiolite) Ltd, Pan Pacific Petroleum (Vietnam) Pty. Ltd. and PetroVietnam Exploration & Production Corp. Ltd.

The Ca Rong Do discovery well flowed 3,265 barrels of oil per day and 8.1 million standard cubic feet of gas per day, demonstrating a working hydrocarbon system within the Nam Con Son basin where a second exploration well is planned for the fourth quarter of this year.

Pitkin Petroleum Plc. is drilling a second well in its oil and gas discovery in Vietnam, and has also started seismic survey for its Service Contract 53 in Mindoro Island, Palawan.

Philex also disclosed to the Philippine Stock Exchange that following the oil and gas discovery on Vietnam Block 07/03 last June, the consortium has completed a 3D seismic survey to define the resource potential of the discovery and that of adjacent structures.

Pitkin recorded a total of 1,100 square kilometers of data, which is presently being interpreted ahead of site selection for the second exploration well. The second commitment well is planned for November.

Philex said Block 07/03 covers an area of 4,915 square kilometers and lies between the Nam Con Son Basin hydrocarbon fields to the north and the East Natuna Basin discoveries to the south.

Pitkin, via its wholly-owned subsidiary, Vietnam American Exploration Co., Llc, has a participating interest of 40 percent in the block, with the balance held by Premier Oil (operator, 30 percent), PearlOil (15 percent) and Pan Pacific Petroleum (15 percent).

Philex also said that in the Philippines, Pitkin has awarded an onshore 2D seismic survey contract to BGP Inc. of China, which will involve the acquisition of 200 kilometers of seismic data in SC 53.

SC 53 covers an area of 7,240 square kilometers, mostly onshore and adjacent to the Palawan Basin, which hosts all the producing oil and gas wells in the Philippines.

It said numerous onshore oil and gas seeps plus two gas discoveries are located in the contract area, and more than 15 prospective structures with individual areas of closure of between seven and 65 square kilometers have been identified from previous work.

Pitkin has a participating interest of 70 percent in the block, with the remaining 30 percent jointly held by The Philodrill Corp., Basic Consolidated, Inc. and Anglo Philippine Hol.dings Corp.

Pitkin operates three service contracts in the Philippines, which comprise a total area of approximately 20,000 square kilometers, both onshore and offshore.