22nd Dec 2015 12:11
LONDON (Alliance News) - Red Emperor Resources NL on Tuesday said joint venture partner Otto Energy Ltd, which is the operator of Service Contract 55, offshore Palawan Basin in the Philippines, has asked for a two-year moratorium.
The request for a moratorium over SC 55 has been lodged with the Philippines Department of Energy. A response is expected early in the new year. Red Emperor Resources holds a 15% participating interest in SC 55.
The joint venture drilled the Hawkeye-1 exploratory well in August 2015. "Although the well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system in the contract area which hosts the "Cinco Prospect" as well as several other leads," Red Emperor said.
"The consortium intends to undertake further technical studies during the moratorium period, including a quantitative interpretation study," Red Emperor added.
According to Red Emperor, a quantitative interpretation is a relatively recent geophysical technique designed to achieve a better understanding of existing and potential petroleum reservoirs.
Shares in Red Emperor were down 21% at 0.860 pence on Tuesday at around midday in London.
By Samuel Agini; [email protected]; @samuelagini
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