Recto Bank said to hold more gas, oil

Forum Energy Plc, which is exploring for oil and gas within the controversial but highly prospective Recto Bank, confirmed Tuesday that there was an “improvement in the resources” estimate believed to be contained in the area, otherwise known as Service Contract 72.

Forum Energy, which holds a 70-percent stake in the SC 72 license, has declined to disclose its findings, preferring instead to present the final report to its board of directors later this week. The new data came from the interpretation of new 3D and 2D data acquired in the service contract area, it reported.

According to previous estimates, the Sampaguita prospect alone was expected to hold roughly 3.4 trillion cubic feet of gas and potentially 440 million barrels of oil—said to be bigger than the existing Malampaya gas field off Palawan.

In a phone interview, Energy Undersecretary Jose M. Layug Jr. said that he had yet to receive a copy of the report, but that he was hoping that Recto Bank’s resources would be bigger than that of Malampaya, providing a boost to the country’s energy prospects.

Currently, the Malampaya field is expected to provide gas for three power facilities in Batangas until 2024. The facilities collectively generate 40 percent of Luzon’s electricity requirements.

Previously, the SC 72 joint venture had said that it was pushing through with its planned well drillings at the Recto Bank this year despite the territorial claims made by Taiwan and China.

Manuel V. Pangilinan, chairman of Philex Mining Corp., had said that the company had no plans of postponing the exploration activities on account of these renewed claims made earlier this year.

Philex Mining, through subsidiaries FEC Resources Inc and Philex Petroleum Corp., holds 64.45 percent of Forum Energy’s issued capital.