(MENAFN - ProactiveInvestors - Australia) Gas2Grid (ASX: GGX) is focusing its efforts on the Malolos-1 workover in the Philippines rather than drilling the Ilang-1 exploration well.
The company said results from the earlier Jacob-1 and Gumamela-1 indicate that there is a high risk that the targeted sandstone reservoirs will not be present within the Ilang prospect.
Additional technical studies are required before drilling Ilang-1 which may be replaced by a new well at another location which represents lower risk.
Gas2Grid is also considering an appraisal well in the Malolos area following a successful workover and testing program. This drilling option includes using Rig-2 and side-tracking from the existing, cased Nuevo Malolos-1 well or drilling a completely new well.
Rig 2 is currently undergoing maintenance on the main electrical generator and the company is considering replacing Rig-1 at Malolos-1 with the bigger Rig 2 to catch up on the time lost on repairs.
Oil was recovered on several drillstem tests conducted over the gross interval 2,185-2,233 metres when Malolos-1 was originally drilled in 1960. Gas2Grid is now aiming to access these oil reservoirs to try and establish commercial oil production.
The workover operations were suspended when "junk" was encountered at the bottom of the hole precluding testing of the main oil bearing sandstone intervals.
The company now plans to perforate and flow test the lower oil bearing sandstone intervals followed by the shallower sandstone reservoirs that have been interpreted as being gas bearing, identified through both cased-hole and open-hole wireline logs.
Gas2Grid has 100% interest in the Service Contract 44 in the Philippines.
The company has also been approached by several other Philippine service contract operators to engage Rig-2 and Rig-1 in their drilling and workover plans for 2013.
Gas2Grid is reviewing these opportunities that could see both rigs fully working through 2013.