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PHILODRILL, in its Exploration Operations Review for 2007,
reported the approval of the farm-in of Vitol GPC Investments AS
(Vitol GPC) by the DOE on September 25,
2007, formalizing Vitol GPC’s status as Technical Advisor to the SC 6A
Consortium. Towards the end of 2007,
Vitol GPC formed a team of geoscientists and engineers tasked to evaluate the
viability of the Octon area in conjunction with the Galoc Field.
The team will also evaluate the potential of the Northern Block where several
prospects and leads
have been identified by previous workers on the area.
Geophysical contractor Geco-Prakla initially provided the
farminee with a critical sector of the 3D seismic data acquired in 1997 by
Geco-Prakla for the SC6A and
SC 14 consortia. With the information at hand, Vitol GPC
immediately started their evaluation of the Octon-Galoc areas. Upon receipt of
the complete seamless 3D seismic 32-bit dataset from Geco-Prakla in April 2008,
Vitol-GPC started evaluation of the northern sector, particularly the Barselisa
Prospect. These evaluation studies comprise the activity for Study Phase 3 of
the Farmin Agreement.
Vitol GPC completed their 3-phase exploration review of the whole
SC 6A Block in September 2008. Study Phase 1 generally was database generation
while Phase 2 involved seismic evaluation and generation/validation of prospects
and leads. Study Phase 3 focused on the evaluation of Octon and Barselisa and
generation of risked reserves volumes for the prospects and leads identified.
The exploration review
concluded that there is limited potential observed in the block outside of Octon
North while the other identified major prospects are considered high risk.
Computed reserves figure for Octon makes it a marginal, yet developable field.
As such, Vitol GPC’s envisaged future programs for Octon are geared towards
development of the field being tied-back to the Galoc Field.
In October 2008, Vitol GPC issued the Project Execution Plan
(PEP) for Octon development and together with the Work Program
& Budget, these were presented to the DOE last November 2008. Part of the plan
is Vitol GPC’s commitment to carry out a significant work program for 2009/2010
consisting of pre-sanction activities which are basically planning strategies
leading to full development of the Octon Field in conjunction with the
anticipated Phase 2 of Galoc Development.
During the first quarter of 2009,
PHILODRILL negotiated with
the DOE for the 15-year final extension of the production term of the SC 6A, as
well as SC 6B-Bonita Block. The technical, legal and financial divisions of the
DOE favorably endorsed the extension on the merit of the submitted future work
programs for the two blocks. The documents granting the extension are now with
the DOE Secretary for signing. The initial 25-year term of these two SC6
Retained Areas expired last February 28, 2009.
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