Gas2Grid said that Rig-2 will commence Malolos-1 operations on Thursday, 24th April and that the swabbing unit, essential for production testing, has already been delivered to the wellsite.
The initial oil testing is still scheduled to commence before the end of April.
– The swabbing unit (to be used to in oil production) was yesterday delivered to site. This equipment 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 it will also save significant cost over equipment rental. The swabbing unit will be operated by Gas2Grid personnel.
– Operations management personnel arrive on location Tuesday and Rig-2 is planned to commence operations this Thursday. Initial operations will 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 metres) 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 surface, dropped downhole in the tubing and had to be 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 to justify the Department of Energy awarding a 25 year production period and leading to full field appraisal and development. 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.
On the 29th January, 2014 the Company reported a "Contingent Resource" of oil in the two productive sandstones for the Malolos Oil Field between a "Low Estimate" (1C) of 6.8 million barrels and a "High Estimate" (3C) of 68.1 million barrels, with a "Best Estimate" (2C) of 20.4 million barrels of "Total Oil Initially in Place". This Contingent Resource is in addition to the Unrisked Prospective Resources released to the ASX on the 29th January, 2014.