To start late this month DOE confirms oil drilling in Leyte
TACLOBAN CITY, Philippines – The Department of Energy has confirmed that onshore drilling for oil in northwest part of Leyte will commence late this July.
The Australian onshore drilling company, Otto Energy Ltd., had also announced in a press statement that it has mobilized the rig that will drill Duhat-2 prospect within the month.
The Duhat-2 well prospect is estimated to contain a volume of between 34-million barrels and 88-million barrels, said the firm, adding that the rig would drill up to a depth of 1,050 meters, estimated to take a minimum of 31 days.
“Drilling of the Duhat-2 well demonstrates Otto Energy’s commitment to deliver value from our exploration portfolio which is focused on East Africa and the Philippines,†said Gregor McNab, Otto chief executive officer in the statement.
Once the Duhat-2 drilling is successful, Otto said that field development and production could commence as early as next year.
The Duhat-2 prospect is under oil and gas exploration and development service contract (SC) 51 awarded by the DOE to a joint venture composed of Otto, Alcorn Gold Resources Corp, Trans-Asia Oil, Energy Development Corp. and Petro Energy Resources Corp.
Otto is the operator of SC 51 with an 80 percent interest. “Duhat-2 is targeting an exciting large oil prospect with significant upside and the potential to deliver a second production asset for Otto in the near term,†McNab said.
The oil potential of northwest Leyte has long been prospected by the Balite asphalt/bitumen and tar-sand deposits and the Tagharigue oil seep observed along a tributary of the Calubian River.
The Tagarigue seep is defined by black oil oozing from bedding planes within miocene claystones and associated gas bubbles observed in the water of the creek.
In a 2012 seismic survey in the area, an oil sample was found on the San Isidro anticline. The liquid sample was an evidence of an active and recent oil producing system capable of charging the Duhat-2 Prospect, company officials added.
The drilling firm had already been given the nod by the Leyte Provincial Board to proceed with the oil exploration which spans around 332,000 hectares covering 20 villages in San Isidro town and portions of Palompon, Tabango and Calubian towns. (FREEMAN)
- Latest
