Philippines

By OGJ editors
HOUSTON, Mar. 11 – TG World Energy Corp., Calgary, will join a group that plans to develop Tindalo, Yakal, and other oil discoveries and targets on Service Contract 54A in the Philippines Northwest Palawan basin.

Project partners in SC 54A will be Nido Petroleum Ltd., operator with 42.4% interest, Kairiki Energy Ltd., Perth, 30.1%, and Trafigura Ventures III BV, Singapore, 15%, and TG World 12.5%. TG World will acquire 7.6% of its interest from Nido and 4.9% from Kairiki for $11.1 million.

Completion of the Tindalo well in 100 m of water is to start in the second quarter of 2010 with first oil output expected shortly thereafter. An extended well test is approved for a maximum of 100 days’ production time or 1 million bbl of output, whichever occurs first.

Following Tindalo, the plan is to move to Yakal for a similar completion and extended well test. An alternate second candidate is to drill a crestal offset to the vintage Nido-1X1 well that tested 1,464 b/d of oil.

A further candidate is to redrill the Singla Head-2 oil discovery, where a 90-m oil column is interpreted from well log and drilling data. Some 19 reef prospects mapped on SC 54A 3D seismic data can be drilled with rig platform leased for Tindalo.

Kairiki Energy noted that entry into the Palawan basin by Shell, BHP Billiton, and ExxonMobil has validated the Philippines’ oil and gas potential and advantageous fiscal regime.