News: Gas2Grid confirms commercial oil flow from Philippines well

Gas2Grid’s (ASX:GGX) Malolos-1 oil well onshore Cebu, Philippines, has demonstrated that it can produce oil at commercial rates of up to 200 barrels of oil equivalent per day for short periods.

Oil flow has been impaired when the perforations within the wellbore at the sandstone reservoirs become blocked with formation fines.

Well testing has determined that the two objective sandstones are oil bearing, established an oilwater contact for the lower oil sandstone indicating a minimum 500 metre vertical oil accumulation.

The production testing has allowed the company to apply to the Philippine Department of Energy to allow it to continue work on SC44 to establish an appropriate completion technology for sustained production as well as full appraisal and development of the oil field.   

Malolos-1 is suspended until the company secures the additional period of work.

Seismic acquisition is also planned to locate appraisal well sites.

The results support the previous Best Estimate Contingent Resource of 20.4 million barrels of oil in-place.