exxon?s 3rd well in sulu to be drilled in may

EXPLORATION company ExxonMobil Exploration and Production Philippines BV, the local subsidiary of Exxon Mobil Corp., is set to drill its third exploratory well at the South Sulu Sea before the end of May.

Energy Undersecretary Ramon Oca told reporters ExxonMobil is expected to drill their third well in the latter part of May.

Oca said ExxonMobil?s drilling rig?the West Aquarius?is en route to the Philippines within the month or in May, at the latest.

Oca added that ExxonMobil has completed drilling its first two wells?the Dabakan 1 and Banduria 1. He added that data processing is still ongoing.

ExxonMobil is the contractor of Service Contract (SC) 56 along with consortium members Mitra Energy Ltd. (25 percent) and BHP Billiton International Exploration Pty. Ltd. (25 percent).

Service Contract 56 covers an area of 8,200 sq km and located about 900 km southwest of Manila and 200 km northwest of Bongao, the capital of Tawi-Tawi province.

To date, ExxonMobil has already spent around $200 million for the Banduria 1 and Dabakan 1 wells. The Dabakan 1 well is about 65 km from Mapun Island, a municipality under the Province of Tawi-Tawi, while Banduria 1 is around 35 km away from Dabakan 1.

Oca said other foreign oil companies have also expressed interest on the country?s upstream oil industry considering ExxonMobil?s positive drilling results in the first two wells, which showed signs of hydrocarbon find, drawing interest of foreign oil companies in the South Sulu area.

Drilling operations of the Dabakan 1 (first well) started on October 11, 2009, and was completed in December wherein ExxonMobil encountered gas, while the Banduria 1 well started drilling operations in January this year and was completed in February.

Former energy secretary Angelo Reyes said SC 56 contract area, based on estimates, is expected to yield about 750 million barrels of oil.

Given the projected yield of the South Sulu Sea oil block, according to Reyes, the yield would be enough to supply the country?s demand for petroleum products for seven years.

?The country consumes about 275,000 barrels per day and if 750 million barrels from the said oil block comes into fruition, then that block?s output would be enough to supply the country?s fuel needs for seven years,? Reyes said.

http://businessmirror.com.ph/index.php?option=com_content&view=article&catid=33%3Aeconomy&id=24273%3Aexxons-third-well-in-sulu-sea-to-be-drilled-next-month&Itemid=60

My comment: I'd say Stickland & Co will be keeping a very close eye on this drill.