Red Emperor Resources NL, partner in SC 55, located in Southwest Palawan Basin, reported on 19 April 2018 that the interest re-assignment from Otto Energy to the partners has been approved by the Philippines Department of Energy (DOE). The new shareholding in the block will be Phinma Energy (37.5% and operator, via subsidiary Palawan55), Red Emperor (37.5%, via subsidiary Century Red Pte Ltd), and Pryce Gases (25%).  The timeline for the moratorium period for exploration Sub-Phase 5 in SC 55 has been revised to reflect approval date of the interest reallocation. The work plan during the moratorium period, running for 13 months after the approval date, will include technical studies over the greater Hawkeye area, for a total expenditure reported by Red Emperor at approximately USD 480,000. At the end of the moratorium, Sub-Phase 5 will run for 12 months with a commitment to drill one ultra-deepwater well, likely targeting the Cinco prospect. Red Emperor reported a budget of USD 3 million for the well.  The DOE found the remaining partners in SC 55 to be qualified from a financial, legal and technical point of view, to continue operations in the block after Ottoâs withdrawal. The block is seen by the DOE as the potential next major gas asset in the country after the Malampaya project.    The Cinco prospect lies in a water depth of 1,430 m, has a closure area of 53 sq km and reservoir depth from 3,120 to 4,500 m (up to 500 m column height). Gross recoverable resources have been estimated at 0.4 to 3.8 Tcfg (2.1 Tcfg mean) plus 16-132 MMbc (74 MMbc mean). The prospect was identified by Otto from the 2D seismic acquired in 2007 and then further defined by the 3D seismic in 2009. The Strategic Environmental Plan Clearance (SEP Clearance) for SC 55 has been received since late 2013. Cinco has a best estimate prospective resource of 1.6 Tcf recoverable gas. The prospect is a carbonate platform located in the south-west central portion of the block.    Otto Energy announced its plan to commence a structured exit from its Philippines assets in November 2015. On 29 September 2016, the company transferred all its interest to partners, pending DOE approval. Prior to the relinquishment, Otto held 68.18% operating interests in the block, with other partners being Red Emperor (15%), Pryce Gases (10%) and Trans Asia (later known as Phinma Energy) (6.82%).  The previous exploration activity in SC 55 was the drilling of Hawkeye 1 (2015) which encountered oil and gas shows, proving the existence of a petroleum system in the area.  Background Information  The 9,152 sq km of SC 55 was originally 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.   Otto has fulfilled the firm obligation for the fourth exploration sub-phase which has expired on 23 December 2015, with the drilling of Hawkeye 1 wildcat. 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 1,788 m and had TD at 2,920 m. Drilling cost for Hawkeye 1 has been reported at approximately USD 25 million.  Hawkeye 1 was the first wildcat drilled in the concession and the pioneer for turbidite play in the basin. 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 âCincoâ prospect as well as several other leads. Otto incorporated the results from the Hawkeye 1 into understanding of the other prospects, including Cinco, which potentially share the same charge source.
Red Emperor Resources NL, partner in SC 55, located in Southwest Palawan Basin, reported on 19 April 2018 that the interest re-assignment from Otto Energy to the partners has been approved by the Philippines Department of Energy (DOE). The new shareholding in the block will be Phinma Energy (37.5% and operator, via subsidiary Palawan55), Red Emperor (37.5%, via subsidiary Century Red Pte Ltd), and Pryce Gases (25%). 