CEBU, Philippines - The Australian-based Gas2Grid Limited has started its operations in Malolos-1 Oil Field, the discovery well for the Malolos Oil Field, in Barangay Olango, Aloguinsan, Cebu last week.
The swabbing unit, the primary equipment essential for their operations, was delivered to the wellsite last week.
The company said the swabbing unit, which is suitable for testing oil production at these depths, has been acquired under a lease/purchase agreement.
This arrangement will not only provide the company with flexibility in the oil testing program but will also save significant cost over equipment rental. These will be operated by Gas2Grid personnel.
Initial operations involve the drilling out of a cement plug that was previously set in casing above the first oil target interval (7,152-7,207 feet; 2,178-2,195 metres).
The shallower target interval (7,152-7,207 feet; 2,178-2,195 meters) was placed on short-term production test in 2013 when it produced 30 bbls oil over a 2.5-hour period before the swabbing assembly parted at the surface, dropped downhole in the tubing, and then fished.
The oil level in the tubing rose to 970 feet (296 metres) below surface in 24 hours under natural flow.
The extended oil production testing program aims to gather sufficient technical information to confirm commerciality of the Malolos Oil Field and to justify the 25-year production period awarded by the Department of Energy last January, leading to its full-field appraisal and development.
The company earlier claimed that proving commercial production at Malolos Oil Field will have a very significant impact on the value of the company and will benefit the Philippine economy.
Gas2Grid Limited (GGX), formed in 2004, is a Sydney based company exploring domestic and international oil and gas. — (FREEMAN)