Sulu Sea gas prospects show potential for significantly larger reserves, PXP Energy reports

MANILA, Philippines — The Sulu Sea prospect covered by Service Contract (SC) 80 potentially holds significantly more reserves than initially expected. This, after Australian oil and gas firm and SC 80 lead operator Tetragon Energy Ltd. reported that the potential recoverable gas reserves at the Halcon exploration prospect jumped to 8 trillion cubic feet (TCF) from the initial 2.6 TCF. Tetragon likewise told the local bourse that the chances of making a discovery increased to 24 percent from 18 percent. Tetragon Energy holds a 37.5-percent interest in SC 80, while PXP Energy Corp. of tycoon Manuel V. Pangilinan and the Ramos family’s The Philodrill Corp. each have 12.5 percent. The latest findings came following a more detailed analysis of seismic data from the Department of Energy (DOE). The group likewise tapped a sedimentological expert, comparing recent similar discoveries in nearby basins. Banking on new data, the company was confident that discoveries made by global energy firms Petroliam Nasional Berhad and Eni in the Indonesia and Malaysia deep waters of Borneo were geologically comparable to its exploration territory. “This three-fold increase in our Mid Case (2U) prospective resource for a key prospect in our Philippines acreage highlights the true scale and opportunity we have in these exciting permits,” Tetragon managing director Conrad Todd said in a statement. “We believe that with our extensive experience in this and the adjacent analogous basins, Tetragon will unlock the potential of this basin and prove it to be on the scale of those in adjacent Malaysia and Indonesia waters where numerous gas and oil discoveries of significant volume have been discovered,” he added. Shares of PXP Energy inched up by 4.04 percent to P3.35 each on Friday following the disclosure. READ: PH awards $207-M power exploration contracts Full dataset is expected to come in by mid-2027, Tetragon Energy said. Shares of PXP Energy jumped 4.04 percent to P3.35 each on Friday following the disclosure. Last year, PXP Energy received three petroleum SCs from the government, covering SC 80 and 81 in the Sulu Sea, and SC 86 (Octon-Malajon Block) in Northwest Palawan. The Sulu Sea blocks—SC 80 and SC 81—are jointly administered by the DOE and the Bangsamoro Autonomous Region in Muslim Mindanao through its Ministry of Environment, Natural Resources, and Energy. INQ