Gas2Grid (ASX:GGX) has started a technical program to establish...

Gas2Grid (ASX:GGX) has started a technical program to establish the best completion technology to fully appraise and develop the Malolos Oil Field onshore Cebu, Philippines.

This follows the company being awarded a two year technical moratorium by the Philippine Department of Energy that provides security of tenure over Service Contract 44 until 28 January 2017.

During this time, it plans to demonstrate the field commerciality and apply for a 25 year production term.

Gas2Grid has already met with selected companies to consider farming in the Service Contract 44 by funding the oil field appraisal and development.

Malolos has a Best Estimate Contingent Resource of 20.4 million barrels of good quality, low sulphur crude oil.

This is located onshore close to transportation in a country with excellent fiscal terms, indicating potentially low development and operating costs.