Sulu Sea Gas Prospect's Potential Significantly Upgraded

MANILA, Philippines — Pangilinan-led PXP Energy Corp. and its partners estimate that the Halcon exploration prospect in the Sulu Sea could contain more recoverable gas than previously projected. In a Philippine Stock Exchange filing yesterday, PXP said Australia’s Tetragon Energy Ltd., operator of Service Contract 80, disclosed that the prospect’s gross 2U (P50) or best estimate had risen to eight trillion cubic feet from 2.6 TCF. Halcon’s gross 3U (P10) or high estimate increased to 22.6 TCF from 19.9 TCF, while its gross 1U (P90) or low estimate climbed to 1.7 TCF from 188 billion cubic feet (BCF). The prospect’s geological chance of success also improved to 24 percent from 18 percent. The upward revisions followed a more detailed evaluation of seismic data obtained from the Department of Energy, as well as the engagement of a sedimentological expert. “The company notes that the information was released by Tetragon in its capacity as operator of SC 80,” said PXP, which holds a 12.5-percent participating interest in the contract. Tetragon, in its disclosure to the Australian Securities Exchange, considers recent discoveries by ENI and Petronas in the Indonesia and Malaysia deep waters off Borneo to be geologically analogous to its acreage in the Philippines. The Australian firm is currently reprocessing 4,600 square kilometers of existing 3D seismic data to better understand the Halcon prospect and other potential gas fields. Initial results are expected early next year, with the full data set due by mid-2027. Tetragon also intends to approach international oil and gas companies to help fund exploration drilling, which could confirm the size of the gas resources and increase the value of the project. As operator, Tetragon holds a 37.5-percent interest in SC 80. Also included in the consortium are The Philodrill Corp. and the United Kingdom’s Sunda Energy Plc. The PXP-backed consortium has also secured SC 81, another petroleum contract in the Sulu Sea. The Philippine government and the Bangsamoro Autonomous Region in Muslim Mindanao jointly license both SC 80 and SC 81. Source: Philstar Business