Good news to the Filipino people and the Philippine economy, a new oil discovery in Cebu was already confirmed by the Department of Energy which which is expected to uplift the Philippine economy.
Photo Credit: Gas2Grid
According to the Australian firm Gas2Grid, the announcement of the discovery is under the approval of the Department of Energy after its application to delcare Malolos-1 oil well on the shore of Cebu Province as an “Oil Discovery.”
Gas2Grid made the following announcement:
“The company advises (announces) that the Philippine Department of Energy has formally recognised Malolos-1 as an oil discovery and approved an extension of SC [Service Contract] 44 in order to conduct oil production with the aim of establishing a commercial oilfield,” Gas2Grid stated.
According to Dennis Morton, the managing director of Gas2Grid, the application for declaration of an oil discovery is the first step in appraising and developing the Malolos oilfield.
The commercial production of the Gas2Grid oil discovery in Cebu will start when approved by the DOE, the agency will provide an additional minimum of 12 months to flow test the well and establish commercial production. Following of the completion of that work and with the DOE’s approval of commercial status, the Malolos oil field will enter a 25 year production phase.
According to Gas2Grid available technical data there is a possibility that Service Contract 44 “is much larger Malolos oilfield than initially (–foul word(s) removed–)sed.” The Service Contract 44, covers 750 square kilometers in Central Cebu Province.
The Australian oil company Gas2Grid successfully perforated and flow tested two oil bearing sandstones in Malolos-1. Oil was produced on a short term test at indicative production rates of between 100 t0 200 barrels of oil per day (bopd).
The Malolos-1 and Malolos-4, recorded oil bearing sandstones of over 496 metre (1,627 feet) vertical interval. The recent oil test production rates (between 100-200 bopd) confirm Malolos-1 as an oil discovery well.
According to Gas2Grid, the initial (–foul word(s) removed–)sment of the oil volume within the Malolos oilfield is a “Contingent Resource” oil in place in the two oil productive sandstones in the range of between a “Low Estimate” (1C) of 4 million barrels and a “High Estimate” (3C) of 42 million barrels, with a “Best Estimate” (2C) of 12 million barrells of “Total Oil Initially in Place.”
The “Oil Discovery in Cebu” is an onshore oilfield which is located some eight kilometers by road from the Cebu’s western coast. The Malolos Oilfield is located 8 kilometers from Aloguinsan and 32 kilometers from Toledo City.
Click Here for Gas2Grid Declaration of Malolos-1 as Oil Field