World Class Discovery off Palawan

[lastlid]

MANILA, Philippines - "Amid rising tensions between the Philippines and China over a section of the West Philippine Sea, a member of the private consortium exploring oil in the area said it may have made a "world-class discovery."

Officials of Atok-Big Wedge Co. told shareholders during its annual meeting that a report from experts commissioned to assess Service Contract (SC) 72 in Reed Bank has yielded a “world-class discovery.”"

http://www.interaksyon.com/article/3...pany-announces

http://business.inquirer.net/67089/p...loration-group

[Rory]

If this is true i can see this dispute only escalating.

[lastlid]

If this is true i can see this dispute only escalating.

Yes. I think that this whole thing is so key in the region. Colossal in fact. It could so easily be resolved if the Chinese weren't so greedy but they show no signs of being otherwise.

Having said that, one of the articles in the link discusses the "world class discovery" on the basis of geophysical grounds alone which is not enough to call it a discovery but all the same the indications are very strong, thus the high focus in the region.

"Given signs that the prospect is economically viable, the consortium will start drilling by the end of the year. The question of whether to drill one well or a back-to-back well however remains on the table.

According to Atok officials and shareholders, the Swedes had drilled the area around Reed Bank in the late 1970s until the early 1980s, yielding some gas discoveries. This prospect was later abandoned for failing the test of economic viability.

However, the oil and gas exploration landscape has changed since, especially with the Malampaya field now producing the gas requirements of the Philippines, which is scrambling to build more power plants that use fuel other than coal and crude to stave off a power crisis, Brown said."

The above paragraphs are most relevant. Drilling at the end of the year will reveal more reliable information.