West Linapacan A and B Oil Fields - Service Contract 14 Block C2
• Working Interest: 22.28%
• Field Operator: Pitkin Petroleum

West Linapacan is located in 300 to 350 metres of water, approximately 60 km offshore from Palawan Island in Service Contract 14 Block C2 (SC 14C2) in the Northwest Palawan Basin, Philippines. It is comprised of two main oil bearing structures - West Linapacan A and B - and several seismic leads.

The West Linapacan A and B structures are northwest southeast trending, fault-bounded anticlines approximately 7.6 km apart. Both fields produced 32 - 34o API oil from the fractured Nido limestone reservoirs.

West Linapacan A was discovered in 1990 and, following the drilling and completion of six subsea wells, an FPSO-type development was employed to produce over 8 MMbbls from the field from 1992 through to early 1996. The field had a peak production rate of over 18,000 bopd. It is believed that the field's production rates were held at a level too high for the reservoir to sustain and early water breakthrough occurred. This has most likely resulted in a significant portion of the potential recoverable oil from the field being bypassed during this production phase. The West Linapacan B was discovered in 1993 and tests from the single well drilled on the structure flowed close to 2,900 bopd.  West Linapacan B has never been developed.

Nido and its Joint Venture partners see West Linapacan A as a potential redevelopment opportunity and West Linapacan B as a potential development opportunity. Throughout 2010 the block Operator, Pitkin Petroleum, continued its development studies over the West Linapacan area.  This included the reprocessing of the 3D seismic data set, interpretation and integration with the fields’ production history, and a conceptual engineering study. Detailed stratigraphic and structural mapping of the reservoir utilising the 3D seismic inversion volume was undertaken and the Operator is planning to update the potential reserves and conceptual development plan following this detailed reservoir mapping.

Bonita Block - Service Contract 6B

• Working Interest: 7.812 %
• Field Operator: The Philodrill Corp.

Service Contract 6 Block B (SC 6B) is situated along the shelfal portion of offshore northwest Palawan and comprises the inboard, shallow water areas some 40 to 50 km northwest of Palawan Island.  Water depths range from 50 to 250 metres.

SC 6B contains the Bonita Field which flowed up to 2,100 bopd of 39.8° API oil during tests in 1989.  Actual development of the field was never done.  The block also contains several untested Nido limestone reservoir structures, including a significant prospect that straddles both SC6B and the SC6 Cadlao production license

Earlier this year, a group consisting of Peak Oil and Gas Philippines Ltd, Blade Petroleum Philippines Ltd, and VenturOil Philippines Inc signed a Farm-in agreement with The Philodrill Corporation and other SC6B joint venture partners for  Peak, et. al.  to acquire 70% of the farmors' aggregate participating interests.  Nido elected  not to farmout its participating interest in the block.

With the completion of Peak's initial data review which was submitted to the JV partners on 29 April 2011, Peak has now exercised its option to farm in to the block which would require a full work program commitment.  The process of assigning the farmors' interest to Peak is now ongoing.