"RUBY" Year

PETROLEUM CONTRACTS

• SC 14 - Nido & Matinloc

• SC 14 C-1 - Galoc

• SC 14 C-2 - West Linapacan

• SC 14 (Retention Blocks)

• SC 6A - Octon

• SC 6 - Cadlao

• SC 6B - Bonita

• SWAN Block

• SC 41 - Sulu Sea

Mindoro:

• SC 53 - Onshore Mindoro

Downloads

• 2008 Annual Report
• 2007 Annual Report
• Prospectus on Stock Rights Offering

NEWS

Petroleum Projects Update as of 24 September 2009

GALOC FIELD

The Philodrill Corporation is pleased to announce that steady Galoc Field operations continue since the August 13, 2009 re-commencement of production as the station-keeping capability of the FPSO Rubicon Intrepid and mooring facilities have coped with the intermittent periods of storms and squalls at the field.  Current production level averages at 11,500 barrels of oil per day.  The Galoc consortium completed the 8^th crude oil shipment on September 16^th involving about 335,431 barrels which was sold to SK Energy of South Korea, a repeat buyer.  Another shipment is scheduled to be carried out in the next couple of weeks.  

Activities on the other Philodrill petroleum blocks are proceeding according to schedule.  In Service Contract 41, Tap Oil recently completed their seismic re-processing and inversion of the Alpine 3D data set and are now in the thick of in-depth, basin-wide evaluation of the Sulu Sea area.  They have embarked on a farm-out campaign to attract potential partners to facilitate further drilling.    Meanwhile, Pitkin Petroleum has wrapped up their seismic re-processing program for the SC 14 - West Linapacan Block and is now completing other requisite complementary studies aimed at identifying potential drilling locations.  Likewise, their work program for the SC 53 - Mindoro Block is progressing as planned.  Pitkin has already selected a seismic contractor which is now mobilizing its field crew in preparation for actual onshore seismic recording starting in October-November. 

Vitol GPC is now finalizing the results of their joint Octon-Galoc evaluation project as part of its Phase 1 farm-in commitment into SC 6A.  Their decision to proceed with the farm-in Phase 2 depends on whether or not the Galoc Consortium will proceed with Phase 2 of the Galoc Project.  Vitol GPC believes that the commercial viability of the Octon Field development necessitates a tie-back to the Galoc Field.  

The Company is also pleased to announce that it has started to receive its share from the Galoc production proceeds. 

Updated: September 24, 2009

1969 - 2009

The Philodrill Corporation was incorporated in 1969 as an oil exploration company with the name Philippine Overseas Drilling and Oil Development Corporation. The company is one of the pioneers in the Philippine oil exploration industry and successfully participated in the drilling of several oil discoveries in the offshore Palawan area, the revenues from which fueled the company's steady growth and profitability through the 70's and the early 80's.

Towards the mid-1980's as the company's petroleum revenues started to taper off, a strategic decision was made to diversify out of purely petroleum operations into the emerging growth areas of the Philippine economy. This move was intended not only accelerate the company's growth and bring greater profitability, but also to provide a prudent counterbalance to the relatively high-risk attendant to the oil exploration.

The company consequently made investments in the property development, manufacturing, mining and financial services sectors, while retaining its active involvement in local oil exploration through its selective participation in the various consortia whose exploration contract areas cover the more prospective areas of the country. 

Philodrill has remained as a diversified concern up to the present. While the company's core business is still petroleum exploration/production, it continues to maintain investments in other companies engaged in property/resort development, mining, infrastructure and financial services. Since the company made its strategic transition in 1985, its non-oil investments have provided the revenues which more than made up for the slack in petroleum earnings. However, management is confident that the company's various petroleum interests situated in areas identified as having good prospectivity for successful exploration and development could generate substantial revenues for the company in the near future.