Palawan55 Exploration and Production Corporation is offering a farm-in opportunity in SC 55, located in Southwest Palawan Basin, in late September 2019. The Fifth Sub-Phase exploration for the block is valid through 25 August 2021 with one commitment well.  Palawan55 holds a 37.5% operating interest and partner Pryce Gas Inc (PGI) has 25% participating interest. In August 2019, the partner Red Emperor withdrew from SC 55, prior to submitting a deed of assignment for its 37.5% to Palawan55. Palawan55's interest will increase to 75%, upon approval by the Department of Energy (DOE).  Previous activity conducted in the block is the drilling of a commitment well, Hawkeye 1. The well was plugged and abandoned with oil and gas shows. It is the only well drilled within the block.  The joint venture had selected and matured the Cinco prospect defined by 3D seismic acquired in 2010. The prospect lies in a water depth of 1,430 m with area of closure of 53 sq km and best prospective resource estimate of 1.6 Tcf of recoverable gas.  Background Information  The original 9,152 sq km of SC 55 was awarded to Ottoman Energy (42.5%, operator), AustralAsian Consortium (AAC) (42.5%) and Trans-Asia Oil and Energy Development Corporation (15%) on 5 August 2005. The contract area was initially divided into two separate blocks, SC 55A (6,097 sq km) and SC 55B (3,055 sq km), the majority of which lies in deepwater.   In early 2015, PNOC-ECâs expressed interest to farm-in in the block, however did not received approval by the Office of the President of the Philippines.  Red Emperor farmed-in for the 15% working interest with the previous operator, Otto Energy (formerly Ottoman Energy) on 2 March 2015. Red Emperorâs participating interests increased to 25% after Otto exited the block and transferred its operating interest to its partners.   On 27 July 2015, PGI signed a farm-in agreement for the right to earn a 10% working interest. PGI agreed to participate and pay 10% at amount of US$3.225 m of the well cost of the drilling and testing of the Hawkeye 1 which were commenced in July-August 2015. Otto fulfilled the commitment for the fourth exploration sub-phase with the drilling of the wildcat. It is the first wildcat drilled in the concession and the pioneer for turbidite play in the basin. Approximately USD 25 million was spent on the drilling commencement of Hawkeye 1. The Hawkeye 1 was plugged and abandoned on 19 August 2015, with oil and gas shows. The well was spudded on 31 July 2015 by âMaersk Venturerâ drillship in water depth around 1,788m and had TD at 2,920 m. The well penetrated the top primary target Pagasa clastic reservoir which is interpreted to be gas bearing at sub-commercial volumes.   The high impact wildcat has proven the presence of an active petroleum system in the contract area, which hosts the âCinco Prospectâ as well as several other leads. The results of the the Hawkeye 1 has been incorporated into understanding of the other prospects, including Cinco, which potentially share the same charge source.   The SC 55 block identified two prospects and eight carbonate leads in the area where the 1,800sq km 3D survey was shot. Total unrisked mean recoveral resource potential is estimated at 19 Tcfg plus 670 MMbc for the Oligocene to Early Miocene carbonates. The Uno prospect, similar to Cinco, is also a platform carbonate build-up located in the central portion of the block. The prospect lies in a water depth of 960 m, has an area of closure of 38 sq km with reservoir objective depth from 3,960 to 4,600m (up to 600m column height), and has gross recoverable resource estimates of 0.01 to 2.1 Tcfg (0.85 Tcfg mean) plus 2-74 MMbc (29 MMbc mean).
Red Emperor (Century Red) has withdrawn from SC 55 (9152km). Its 37,5% interest is distributed amongst remaining partners Palawan55 op. ->75% and Pryce Gas 25%). 