Nido said yesterday that the Energy Searcher drillship continued drilling the Galoc-4 well in an 8.5-inch horizontal hole at a depth of 4104m.
“The logging while drilling results and cutting analysis from this well have been very encouraging and indicate good reservoir development along the well track,” the company said.
Once the horizontal section reaches a total depth of 4376m, a 5.5-inch predrilled liner will be run and the well suspended.
Drilling of the Galoc-3 horizontal well would then begin.
The Galoc-3 and Galoc-4 development wells are targeting 23.5 million barrels of proved and probable (2P) reserves as certified by Gaffney, Cline and Associates.
These deviated horizontal wells are aimed at penetrating 1600m of the oil-bearing sandstone reservoir at depths of around 2000m.
First oil is expected from Galoc in April, with production to be coursed through a floating storage and offloading facility.
Nido, which has a 23% stake in Galoc, will be entitled to about 4000 barrels of oil per day once production starts in the first quarter of 2008.
Otto has received its stake in the project via the acquisition of a 31.38% shareholding in Galoc Production Company, which is operator and holds a 58.29% stake in the development located in offshore Palawan Basin service contract SC14C.
Other members of the consortium are Alcorn Gold Resources, Forum Energy, Oriental Petroleum, PetroEnergy Resources and Philodrill.