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The farm-in agreement between erstwhile operator
Laxmi, farminee-operator Pitkin Petroleum and the SC 53 Filipino
partners (PHILODRILL, Basic Petroleum and Anglo-Philippine Holdings)
was submitted to the DOE on September 2007 and was finally approved
on June 11, 2008. Pitkin had proposed to assume Laxmi’s 70%
interest and the operatorship of the block by carrying the Filipino
partners on a seismic program with an initial minimum commitment of
USD 1.5 MM. Pitkin subsequently increased its seismic work program
cost to USD 3.0 MM.
In July 2008, Pitkin presented the programmed
activities and budget for the block’s First Sub-Phase ending
September 2009 and partial Second Sub-Phase ending December 2009.
The program consists of firm G & G commitments (seismic acquisition,
processing and interpretation) and contingent tasks (additional
onshore seismic and new offshore seismic surveys), among others.
PHILODRILL shares only in certain firm non-G&G activities towards
the end of Sub-Phase 1 in September 2009. However, it shares in all
contingent programs, some of which started in January 2009.
A major component of the initial sub-phases work
program of Pitkin is the Magneto-Telluric Survey by Phoenix MT which
commenced on September 4, 2008. Twenty-six (26) stations have been
completed. Production is hampered by excessive noise in the data
requiring repeat measurements in several stations, poor weather
conditions for the past several weeks, and strong protests from the
clergy and their followers with the MT crew literally blocked to
carry out the work. Pending resolution of the protests, Phoenix MT
accepted a work assignment in Biliran and will resume work on the 13
remaining stations in Onshore Mindoro once their engagement is
completed.
Another major component of the
Sub-Phase 1 work program is the 200 line-km onshore survey. During
a TCM /OCM held in January 2009, Pitkin presented the program of the
seismic data acquisition. The JV-approved seismic program which was
originally scheduled to begin in April 2009 was deferred to November
this year as Pitkin has yet to finalize the seismic survey
contract. The new seismic schedule will also enable Pitkin to
avoid the main bulk of the work having to be undertaken during the
rainy season. The Filipino partners are all carried in this
undertaking.
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