Project Profile

Value: Undisclosed
Location: onshore Cebu, Philippines
Reserves: Unknown
Drilling Depth: 2,000 to 2,800 metres
Start-up Year: -

Gas2Grid Limited has a 100% interest in SC 44, located onshore Cebu in the Philippines. Petroleum exploration wells drilled during the 1960s on surface anticlines, within the area now covered by SC 44, had flowed natural gas to surface and/or recovered significant volumes of oil during open-hole testing. There had been no further evaluation of these discoveries since the 1960s and because the price of natural gas and electricity has increased significantly over the last 40 years it was decided to evaluate the natural gas flow potential of the original discoveries and assess their potential as a fuel supply for a natural gas fired power station.

Gas2Grid has entered into a Co-Operative Deed with Marubeni whereby Marubeni has an option to fund and develop any power units needed to generate electricity. If Marubeni exercises its option it would become responsible for electricity generation and sales with Gas2Grid selling natural gas to Marubeni as a feedstock for the power station.

Malolos-1, drilled in 1960, is located onshore central Cebu and approximately 50 kilometres west-southwest of Cebu City (2 million people) to a total depth of 2,748 metres (9,016 feet) targeting Tertiary age marine sandstone reservoirs. Hydrocarbon shows occur in almost every porous reservoir interval in Malolos-1 from the Late Miocene to Pliocene Maingit Clastics where sandstone cuttings and core material were described as bright, yellow to whitish yellow, good kerosene odour, with pale straw cut and high total gas. Malolos-1 was drilled to a total depth of 2,748m and 7 inch casing run to total depth, cased hole testing may have been conducted but there are no records indicating such a program was undertaken.

Nuevo Malolos-1 was drilled in late 2006 - early 2007 to a total depth of 1,945 metres and it was designed to test for commercial gas and oil in the Malolos anticline, being sited about 15 metres west and twinning Malolos-1. Shallow gas sandstone was tested by DST-6 in Malolos-1 and flowed at estimated rates of up to 5 million cubic feet/day.

A 54 kilometre seismic acquisition program was completed in March, 2010 with field operations being curtailed by the onset of the wet season. Phase 2 seismic acquisition commenced on the 9th November 2010 with data acquisition completed on the 16th December 2010 for a total 61.3 kilometres recorded (a total 115.3 kilometres in Phases 1 and 2). Field data quality is generally excellent. The newly acquired seismic data is of excellent quality where it has been acquired over ground not affected by outcropping limestone. The interpretation of the data has also been completed providing good geologic insight over selected areas of Service Contract 44. The new data has clearly identified, for the first time, the Cebu Limestone carbonate reef play and the younger turbidite sandstone traps, both structural and structural/stratigraphic. The newly acquired seismic data is generally of high frequency enhancing the ability to identify and map reservoir targets. The 2011 seismic survey acquisition commenced on 3 July 2011 and has been completed with 66.9 kms of new data acquired and interpreted. The seismic program has delineated three new drilling prospects that will be tested in the first half of 2012 plus numerous other potential prospects that warrant further investigation.

The company will drill three new exploration wells commencing in the first half of 2012. The new wells will target both the Miocene carbonate reefs and Tertiary age sandstone reservoirs trapped within anticlines. These prospects were originally identified by the 2010 Seismic Survey and drilling locations finalized by the 2011 Seismic Survey. The Jacob-1 access road and well pad are currently under construction and will be completed within the next few weeks. Site works have also commenced at the Gumamela-1 wellsite and vegetation clearing has been completed at the Ilang-1 wellsite.

Operators:

Gas2Grid Limited: Operator with 100% interest