MANILA, Philippines ? Exxonmobil Exploration and Production Philippines B.V. has started drilling its third exploration well in the South Sulu Sea early this month, in view of encouraging indications from the first two wells it earlier drilled.

The cost of drilling the third well was estimated to hit $100 million, similar to the costs of drilling each of the first two wells.

ExxonMobil managing director Ian A. Fischer said the company expects to wrap up its drilling activities at the Palendag-1 well within 60 to 90 days.

?It depends on how things go. We?re very deliberate in how we approach drilling (in) our wells?we don?t take any chances, any risks,? Fischer added.

ExxonMobil has again commissioned the Seadrill West Aquarius?the same drilling rig it used for the first two wells?for its exploration operations within Service Contract 56.

West Aquarius is a deepwater semi-submersible rig, which is designed to operate in water depths of up to 3,000 meters and has a maximum drilling depth of about 10,000 meters.

?ExxonMobil has safely drilled two exploration wells in the South Sulu sea. Drilling the third exploration well is part of Department of Energy?s program to encourage the development of the energy sector in the Philippines to support economic growth,? added Acting Energy Secretary Jose C. Ibazeta.

Drilling operations in SC 56 started in October 2009. Initial results indicated the presence of gas at the first well named Dabakan-1. Meanwhile, drilling at the second well or Banduria-1 was completed only in February this year.

The company has been analyzing the data from the first two exploration wells, Fischer added.

When asked about the possibility of drilling a fourth well, Fischer only said that ExxonMobil would continue evaluating opportunities within the service contract area, estimated to have over 750 million barrels in oil reserves?enough to provide the Philippines with petroleum products for seven years.

?It?s very early in our exploration stage and we?re still evaluating. We drill where we think it?s appropriate and if we have a rig available to drill with,? he added.