Philippines: Philippines: Red Emperor Resources granted 2-year moratorium on SC 55, offshore Palawan Basin
Red Emperor Resources has provided the following update with respect to Service Contract 55 (SC 55), offshore Palawan Basin in the Philippines.
Red Emperor has been advised that the Joint Venture has formally received approval from the Philippines Department of Energy for a two-year moratorium, until 23 December 2017, on required work activity under Service Contract 55. During the moratorium period, the consortium will conduct specialized geophysical studies in the area surrounding the Hawkeye prospect which encountered gas shows when it was drilled last year. Although the Hawkeye well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system in the contract area which hosts the ‘Cinco Prospect’ as well as several other leads.
As announced previously, Otto Energy has advised the JV of its intention to exit the Block SC 55 as part of its strategy to focus on its North American assets. Red Emperor intends to have its full, proportionate interest be assigned and as a result its working interest will increase from 15% to 37.5%.
In conjunction with Red Emperor’s commitment to SC 55, the Board continues to review and evaluate new opportunities it believes could compliment the current assets in the portfolio. The Company looks forward to providing the market with more information on these potential opportunities as they develop.