drill adjoining philippines site, page-16

FYI. SC46 drill . SALTY

Oil Exploration

In a desperate effort to achieve energy independence within six years under the Medium-Term Philippine Development Plan (MTPDP, 2004-2010), the government has been awarding service contracts to various foreign oil and gas exploration companies around the country. To date, there are 28 Service Contracts, one Geophysical Survey and Exploration Contract (GSEC) and nine Petroleum Energy Contracting Rounds (PERC).

On Dec. 21, 2004 the Philippine government awarded to JAPEX-Philippines, Inc. Service Contract 46, which covers 2,850 square kilometers offshore of Tañon Strait covering 13 barangays in Pinamunghan and Aloguinsan towns in Cebu ; 14 towns and cities in Negros Oriental and four towns in Negros Occidental.

JAPEX-Philippines is a 100-percent subsidiary of Japan Petroleum Exploration Co. Ltd., a leading Japanese upstream company engage in oil and natural gas exploration and production (E & P) activities both in Japan and overseas. JAPEX employs some 1,470 employees worldwide.

In May 2005, JAPEX holds a 751-kilometer multi-channel sub-bottom profiling survey using the M/S Veritas Searcher and two chase boats. It carries a 3.5-kilometer cable.

Seismic surveys are used to determine the structure of underground rock formations by firing explosive charges in the ground. The intense sounds produced reflect back to a receiver to provide information about oil and gas deposits that may lie beneath the seabed.

According to local fisherfolks, the survey operates on a 24-hour basis. They could hear sounds of blasting at an interval of five to 20 seconds much like that of a thunder and as if the ship furrowing the undersea.

According to Energy Undersecretary Guillermo Balce, Tañon Strait is expected to produce 1 billion barrels of oil. Out of this potential reserve, about 100 million barrels of oil can be recovered.

Starting November 10 this year, Japex plans to drill a hole 3,150 meters-deep in an area some 3 kilometers west of Pinamungajan town in western Cebu. JAPEX will use the Mobile Offshore Drilling Unit (MODU), known as Hakoryu V.

If they believe that there is gas, they will set a 7" liner (steel pipe) to test the well but if the area is negative for gas and oil, they will plug the well with cement and abandon it. Another well within the contracted area will be drilled until they are certain of their data and information.