GOOD news oil for our country

**timrev** · October 24th, 2012 11:09 AM

Frontier Oil to spend $5M for Cagayan Valley drilling

Australian oil and gas company Frontier Oil Corp. will start drilling an exploration well at the Nassiping-2 prospect in onshore Cagayan Valley at an estimated cost of $5 million, the Department of Energy (DOE) said.

Previous gas samples from the field have shown that the gas is predominantly “methane and thermogenic in origin, with indications of an active gas-bearing section,” the company said.

The Nassiping-2 well was drilled in 1984 and penetrated a substantial, gas-bearing limestone section but was not flow-tested.

The government earlier awarded Service Contract 52 covering the Nassiping-2 prospect to E.F. Durkee and Associates, covering 96,000 hectares in Piat-San Jose, Northern Cagayan Valley.

Frontier holds an 80 percent interest in SC 52. Its focus of activities is on Nassiping-2, an existing well containing a previously discovered but untested gas discovery under an earlier agreement with E.F. Durkee.

Frontier and Phinma unit Trans-Asia Oil and Energy Development Corp. signed a farm-in option agreement for SC 52 recently wherein Trans-Asia has the option to acquire 10 percent of the block upon payment of an agreed amount.

Frontier has mobilized a rig from Thailand for the drilling operations expected to start in the third or fourth week of the month.

Meanwhile, Trans-Asia earlier reported that Frontier has decided to pursue its acquisition of 15 percent of the former’s stake in Service Contract 69 located at the Camotes Sea in Eastern Visayas.

The SC 69 block, according to previous studies, recorded more than 20 structures with potential for both oil and gas.

Black Pearl - Daily News Brief: Frontier Oil to spend $5M for Cagayan Valley drilling

**raine** · October 24th, 2012 12:58 PM

wal pa rin yatang pinagbago, pataas pa rin ng pataas ang price ng oil, GOOD NEWS?

**uls** · October 24th, 2012 01:10 PM

kahit may oil ang Pinas di naman bababa ang pump prices unless i-subsidize ng gobyerno like what they do in Saudi Arabia

pricing for oil pumped out of Philippine territory will still follow a benchmark (maybe Tapis which is traded in Singapore)

btw, yung Nassiping-2... it's not oil. it's natgas

**yebo** · October 24th, 2012 01:30 PM

kaya nga sila nakaka-drill ng oil sa pilipinas kasi mataas ang price ng oil and gas ngayon. mataas ang risks involved kasi considered pa din na "wild cat" territory ang pinas, the chances of hitting oil or gas is low compared to say malaysia, brunie or indonesia. so kung mataas ang price ng petroleum then they have the extra funds to look for oil in places with lower probability of payback.

**uls** · October 24th, 2012 01:38 PM

yup. kaya sabi ko isang thread oil companies need oil price to stay high to make projects viable

commercial breakeven for many projects is $100/barrel

**timrev** · October 24th, 2012 02:09 PM

kahit LPG lang sana bumaba ang price...

panu ba kinukuha sa yun nat.gas sa loob ng lupa? gas na ba lumalabas yun?

**uls** · October 24th, 2012 02:48 PM

let's clear something... natgas is not LPG. LPG is a product of crude oil refining

extracting natgas -- first you drill a well then you put a wellhead

raw gas --> pre-processing (to remove water and condensates) --> pipelined to processing plant (to remove other hydrocarbon gases) --> pipelined to customers

**chrismarte** · October 24th, 2012 04:01 PM

Originally Posted by timrev

kahit LPG lang sana bumaba ang price...

panu ba kinukuha sa yun nat.gas sa loob ng lupa? gas na ba lumalabas yun?

AFAIK, almost the same ng oil (liquid) but drilling nat. gas mas risky at mas dangerous. mas marami kasing hazardous gas ang kasama at ilalabas ng drilling like H2S.