Nassiping-2 well (Santo Niño) | oil field, petrol / gas station

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MANILA – Development work on an oil and gas find in the Cagayan Valley is moving forward, the project's proponents said on Tuesday.

In a disclosure to the Philippine Stock Exchange, Raymundo A. Reyes, Jr., Trans-Asia Oil and Energy Development Corp senior vice president, said the company's partner, Frontier Oil Corp, will conduct a new "well stimulation and testing program" at the Nassiping -2 well covered by Service Contract 52.

"Barring any unforeseen delays, the program will likely commence in the second week of November 2012," he said.

Service Contract 52 covers 96,000 hectares of land in Piat-San Jose, northern Cagayan Valley.

The development work, which seeks to identify additional information on the block's reservoir, follows flow testing operations conducted on the same well early this year.

The tests yielded "inconclusive" results, Reyes said.

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

Previous gas samples showed the gas from SC 52 is predominantly "methane and thermogenic in origin, with indications of an active gas-bearing section."

The SC 52 consortium is composed of Frontier Oil, Frontier Gasfields Pty Ltd. and E.F. Durkee & Associates.

Frontier and Trans-Asia earlier signed a farm-in option agreement for SC 52 wherein the former has the option to acquire 10 percent of the block upon payment of an agreed amount.
www.interaksyon.com/business/46338/trans-asia-says-new-...