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Gas2Grid to carry out long term production test at Philippines oil well

Published: 14:40 18 Jul 2013 AEST

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Gas2Grid (ASX: GGX) is planning to carry out a longer period production test of its Malolos-1 well onshore Cebu, Philippines, after analysis confirmed the oil produced is typical of that produced in the region and of saleable quality.

The SC44 block is situated in a producing petroleum region with oil and gas production since 1960s.

This testing will move some of the Contingent Resource of 12 million barrels of oil to the Reserve Category and also gather technical data to help plan field development.

Testing will be run over several months once equipment has been sourced and installed at the well site.

Longer period testing and forward planning will require sourcing of pumping equipment, onsite oil storage, short term marketing arrangements and transport to point of sale. Company owned rigs and other existing equipment will be used during this phase.

The results of this ongoing testing program will dictate further field appraisal and development activities that are likely to include drilling of new wells and seismic acquisition.

Malolos is located about 8 kilometres by road from the western coast of Cebu.

Oil transportation options from the Malolos Oil Field include road transport by a new, all weather, concrete road from the wellsite to coastal port options at nearby Aloguinsan, which is less than 10 minutes away by road, or the larger, established port of Toledo (32 kilometres – 30 minutes by road).

One option would be to load the oil onto marine transport for sale either to one of two oil refineries located in Batangas, Philippines (about 500 kilometres north) or in Singapore (about 2,500 kilometres south-west). Local sale options on the island of Cebu are also being investigated.

 

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