Philippines: New oil well to be drilled at Galoc field

Philippines: New oil well to be drilled at Galoc field

The operator of the Galoc oil field in Palawan has tapped a contractor to
drill a new well to extend the life of the oil field.

Australian oil and gas company Nido Petroleum Ltd. said its wholly owned
subsidiary Galoc Production Co. W.L.L. has signed a binding rig contract
with Golden Close Maritime Corp. Ltd. for the drillship "Deepsea Metro I" to
drill the Galoc-7/7ST appraisal well.

The contract period consists of a firm well and an optional side track.

"We are pleased to announce the execution of a binding rig contract with
Golden Close Maritime Corp. Ltd to secure the Deepsea Metro I for the
Galoc-7/7ST appraisal well and we look forward to drilling operations
commencing in the Philippines as we seek to unlock the potential for
extending the field life of our cornerstone asset," Nido managing director
Mike Fischer said.

Golden Close Maritime is a wholly owned subsidiary of Deepsea Metro Ltd.
which is 40 percent owned by the Odfjell Drilling group, a key player in the
upstream oil and gas industry since the 1970s.

The Galoc oil field in northwest Palawan showed promise for expansion in
2019 following a favorable third party assessment contracted by Nido
Petroleum Ltd. and its partners.

Nido said Deepsea Metro I is a cutting edge sixth-generation drillship with
dual derricks capable of operating in water depths of up to 10,000 feet and
to drill to a total depth of 40,000 sub-sea.

The Galoc oil field is comprised of the producing Central Field Area and the
un-drilled northern extension Galoc Mid Area, where drilling of Galoc-7
appraisal well is considered to determine contingent reserves.

In August last year, Nido said ODIN Reservoir Consultants Pty Ltd. completed
an independent assessment, which is an update to the previous work by
Gaffney Cline & Associates.

ODIN's assessment showed the Galoc field is estimated to contain contingent
resources of as low estimate (1C), 13.3 MMstb as best estimate (2C) and as
highest estimate (3C).

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Link to Original Article:
http://www.philstar.com/business/2017/01/27/1665759/new-oil-well-be-drilled-
galoc-field

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com