PRYCE Gases Inc. (PGI), a distributor of liquefied petroleum gas, is set to drill a well in the southwest Palawan Basin.
“Pryce Gases Inc., along with a consortium partner, has decided to enter Sub-Phase 5 of Service Contract 55 [SC 55], which will be effective on August 26, 2019,” said PGI.
PGI’s entry into Sub-Phase 5 will mean the drilling of one ultra-deepwater well at the cost of at least $3 million.
PGI acquired a 25-percent interest in SC 55 via a farm-in agreement with Otto Energy Philippines Inc.
SC 55 consortium is composed of Otto Energy Philippines; Otto Energy Investments Ltd.; PNOC-Exploration Corp.; and Palawan55 Exploration & Production Corp. (Palawan55).
PGI said the drilling activity is without prejudice to the consortium exercising its option to enter the appraisal period on or before August 26, 2019.
“Alternatively, the consortium may opt to enter an appraisal period, which will require the implementation of an appraisal work program. This program has to be approved by the Department of Energy, and may involve the drilling of an appraisal well,” it added.
PGI is a subsidiary of Pryce Corp. and is principally engaged in the importation, distribution and retail sale of liquefied petroleum gas.
SC 55 is a deepwater block located in the southwest Palawan Basin, covering an area of 9,880 sq. km. It is in the middle of a proven regional oil and gas fairway that extends from the productive Borneo offshore region in the southwest, to the offshore Philippine production assets northwest of Palawan.