Cagayan gas exploration to resume next year
Frontier Oil Corp. plans to resume by early next year the exploration and drilling within Service Contract 52 in Cagayan, following a recent suspension of some exploration and pre-drilling activities in the field.
According to Trans-Asia Oil and Energy Development Corp., Frontier Oil has decided to temporarily suspend the Nassiping-2 acid stimulation program due to an “obstruction in the well bore that prevented conveyance of equipment to the zone of interest.”
In a disclosure to the Philippine Stock Exchange on Wednesday, Trans-Asia Oil explained that Frontier intends to instead mobilize a drilling rig by early 2013 to remove the said obstruction and complete the stimulation program. The rig will also help the group test the prospective gas-bearing horizons.
The simulation program was supposed to help Frontier determine the viability of the service contract area.
Currently, the consortium operating SC 52 is composed of Frontier Oil, Frontier Gasfields Pty Ltd. and E.F. Durkee & Associates.—Amy R. Remo