More oil found in Aloguinsan

CEBU, Philippines -  Gas2Grid Limited has announced that the percentage of oil found in the swabbing operations in Olango, Aloguinsan has increased.

In a report to the Department of Energy, the company said 95 PSI wellhead pressure was recorded morning on Monday and Tuesday after the well was shut-in overnight.

Yesterday morning, the gas reportedly flared for 35 minutes before subsiding.

Associated gas has also reportedly broken out of the oil as the back-pressure on the oil bearing formation is reduced.

Swabbing fluid from the production tubing and lowering the fluid level reduces the back-pressure on the oil bearing formations and, as this is being done, the percentage of oil recovered and the production rate will likely increase.

"It will likely take several more days before an initial oil production rate can be determined," the company's statement read.

Gas2Grid Limited advised Monday that the Malolos-1 swabbing unit began operations over the weekend and oil has already been produced to the surface.

Swabbing operations commenced early Saturday evening and continued for most of Sunday.

Some delays were experienced Sunday when some material was lodged in the tubing, which affected swabbing efficiency.

 Oil was first produced late Sunday morning and increased in amount with each swab run with the balance of the fluid produced being drill water, which filled the tubing before the commencement of swabbing operations.

The extended oil production testing program aims to gather sufficient technical information to confirm commerciality of the Malolos Oil Field to justify the DOE's awarding a 25-year production period and leading to full field appraisal and development.

The company maintained 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.  (FREEMAN)