Red Emperor Gets Two Year Moratorium for Philippines JV
Red Emperor on Friday said its joint venture with respect to Service Contract 55 (SC 55), offshore Palawan Basin in the Philippines has received approval from Department of Energy for a two-year moratorium, until 23 December 2017, on required work activity.
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, the company said.
Partner Otto Energy has previously advised the joint venture 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 percent to 37.5 percent.
SC55 is located in the southwest Palawan Basin, covers an area of 9,880km2 and was awarded to Otto Energy Investments Ltd in 2005. It is a deep-water block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the southwest to the offshore Philippine production assets northwest of Palawan.