PXP Energy Corporation

SC 14 Northwest Palawan

SC 14 is located offshore Northwest Palawan covering an area of 720 square kilometers. The SC 14 was awarded on December 17, 1975 and is presently in the 15-year Production Period extension ending on December 17, 2025. The SC 14 contract is divided into seven blocks, five of which have been surrendered to the DOE in February 2021.

Block C-1 Galoc

Forum Energy Philippines Corporation: 3.2103%

Block C-1 Galoc has an area of 164 sq. km and is operated by NPG Pty Ltd. The block contains the producing Galoc Oil Field, which has already yielded about 24.2 million barrels of oil (MMBO) since production started in October 2008.

Production of the Galoc Field is via four subsea wells tied back to a Floating Production Storage Offtake (FPSO) vessel “Intrepid Balanghai”. The FPSO and subsea facilities are managed by THREE60 Energy under a “Life of Field” Operations & Management (O&M) contract.

Block C-2 West Linapacan

Forum Energy Philippines Corporation: 9.103%

Block C-2 has an area of 176.5 sq. km and contains the West Linapacan “A” and “B” structures. The Consortium headed by Philodrill continues with evaluating the viability of redeveloping the West Linapacan “A” Field, which was discovered in 1990 and produced over 8 MMBO from 1992 before being shut-in in 1996.

In 2018, the JV, headed by Philodrill, completed mapping and interpretation work on the 3D seismic data that was reprocessed in 2014. The study focused on the West Linapacan “B” structure, which was drilled in 1991.

In September 2021, the Consortium commenced a technical study on the West Linapacan “B” Field that focuses on reviewing the available geologic and well data, digitization of well logs, reservoir modeling and fracture analysis, followed by resource estimation. Phase 1 of the study was completed in November 2021, with preliminary results indicating a standalone development for the West Linapacan “B” Field would not be economically viable. Philodrill continued with Phase 2 of the study, which comprises the formulation of an appraisal/conceptual development and scoping economics involving the West Linapacan “A” and “B” Fields. The results indicate a joint development of the fields is feasible provided it meets certain conditions related to recoverable reserves, development costs, production rates, and oil price.

On October 20, 2022, Nido Petroleum Philippines Pty Ltd (Nido), a current member of the SC 14C-2 Consortium, submitted a proposal to drill a well and conduct an Extended Well Test (EWT) on West Linapacan “A" to earn an additional 62.721% of the Filipino partners’ current participating interest. Discussions with Nido on the farm-in proposal are ongoing.