Trans-Asia Oil, Frontier to redrill Nassiping well
Listed Trans-Asia Oil and Energy Development Corp. signed an agreement with Frontier Oil Corp. to reenter the Nassiping-2 well in Gattaran, Cagayan.
Trans-Asia disclosed to the Philippine Stock Exchange it signed a binding contract with Frontier Oil, operator of service contract 52, to redrill the well.
Drilling operations are expected to begin in the first quarter of 2014.
Trans-Asia said it had the option to acquire a 10-percent participating interest in SC 52 from Frontier within 90 days after completion of the drilling operations.
“The SC 52 consortium initially reentered the Nassiping-2 well in February 2012, but flow tests conducted on potential bypassed gas zones in the upper part of the borehold yielded inconclusive results,” it said.
SC 52 is estimated to contain a contingent gas resource in place ranging from 45.46 billion cubic feet to as much as 231.91 BCF.
The Nassiping field was initially discovered by PNOC Exploration Corp. in 1984. The presence of commercial quantities of gas were proven in the Cagayan Basin, as shown by the San Antonio field in Isabela, located around 160 kilometers south of Nassiping 2.
The field, which was operated by PNOC Exploration, produced 3.5 billion cubic feet of gas and was used to fire a power-generating unit.