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Service Contract No. 41 - (Sulu Sea)

 

(text taken from 2008 Annual Report)

 

In early 2008, block operator Tap Oil (Philippines) Pty Ltd completed their ranking of the top drillable prospects identified in the 3D seismic data acquired in July 2007.  The Lumba Lumba Prospect came out first in the ranking, the others, in their order of relevance, being Mirapina, Wahoo, Aardvark and Moose West.  During the same period, Tap Oil finalized negotiations for a drilling rig to be mobilized in the Sulu Sea area by June 2008.  The semi-submersible rig “TransOcean Legend” owned by TransOcean was selected for the drilling campaign.

 

In May 2008, Tap Oil presented for approval by the Joint Venture the program and budgets for potential two (2) wells which they plan to drill back to back. Tap Oil offered to drill the second well on a sole-risk basis with their partner Salamander Energy but would allow the Filipino partners to back-in by paying consistent with the SC 41 Joint Operating Agreement.  The partners negotiated for a reduction in the premium which the operator turned down.

 

The Lumba Lumba-1 well was programmed to test multiple reservoir targets in a series of interpreted channel and fan complexes with a planned minimum total depth of 2,250 meters true vertical depth (TVDss), to be deepened in the event of encouragement such as presence of significant oil shows or oil on wireline logs. 

 

Tap Oil spudded the well on July 19, 2008 in 1,107 meters water depth.  After running and setting the 2 upper casings and while drilling the 17 ˝-inch section of the hole, the operator observed that the guide base moved some 2 meters down and the string weight increased.  Further cementing appeared to have abated subsidence, but Tap Oil observed large chunks of cement in the guide base and attempts to break up and clear the wellhead housing all failed.  The operator decided to plug the well, moved the rig to a new location and spudded the Lumba Lumba- 1A well on July 27, 2008.

 

Based on wireline logs and drilling returns, the Lumba Lumba- 1A did not encounter reservoir-quality formation at its two shallow primary objectives although elevated gas readings up to C5 were observed.  Due to deteriorating wellbore conditions, Tap Oil decided not to proceed to the deeper secondary objectives.  The well was eventually plugged and abandoned as a dry hole on August 20, 2008.  The well reached a final depth of 1,678 meters TVDss.

 

The DOE, in a letter to Tap Oil, extended the term of Service Contract 41 to enable the operator to undertake pre-stack time migration and inversion of the 3D dataset.  Tap Oil aims to rectify seismic data quality issues, the result of which is seen to greatly contribute in the de-risking of numerous prospects and in the selection of the next prospect for drilling.  An Australian geophysical contractor, DownUnder Geosolutions, was contracted to perform the data processing work.  As of time of writing, the contractor has completed about 70% of the whole tasks which also include seismic inversion, rock physics, and lithological/liquids analysis.  Total budget for the program is USD 812,220.00.  PHILODRILL’s share in the costs is about USD 27,600.

 

 
 

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