Tetragon Energy Upsizes Philippine Offshore Gas Resources to 8 tcf

en.Wedoany.com Reported - Tetragon Energy Ltd. has revised upward its prospective resource assessment for the Halcon prospect within offshore Philippine Service Contracts SC-80 and SC-81: total 2U (P50) prospective recoverable gas resources have increased from 2.6 tcf to 8.0 tcf, total 1U (P90) from 188 bcf to 1.7 tcf, total 3U from 19.9 tcf to 22.6 tcf, and the geological chance of success has risen from 18% to 24%.

The two contract areas are located in the Sandakan Basin in the Sulu Sea within the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), a relatively underexplored portion of the circum-Borneo petroleum province, with no production to date.

The resource upgrade is based on Tetragon Energy's more detailed interpretation of existing seismic data from the Philippine Department of Energy; the company has also engaged sedimentology experts to compare Halcon with recent analogous discoveries in adjacent basins. The company believes that recent discoveries by Eni and Petronas in the Indonesian and Malaysian deepwater areas of Borneo are geologically analogous to its contract areas in the Philippine deepwater offshore Borneo; among these, Eni's 2023 Geng North discovery (5 tcf of original gas in place and 400 million barrels of condensate) is highly analogous to the Halcon prospect within SC-80.

Tetragon Energy is reprocessing the existing 4,600 square kilometers of 3D seismic data to further delineate the Halcon prospect, mature the existing Dabakan and Palendag discoveries (2C resources of 470 bcf), and advance other prospective structures. Early reprocessing results are expected in 2027, with the full dataset expected to be available around mid-2027.

SC-80 hosts the existing Dabakan-1 gas and Palendag-1A condensate gas discoveries, which are typical structures in the circum-Borneo toe thrust fold belt, with multiple turbidite sandstone reservoirs developed. SC-81 is located in shallower water closer to the Borneo shelf, with exploration prospects concentrated in slope fan channel facies and deepwater fold belt settings in the eastern portion of the contract area, whose trap-forming conditions are similar to those of SC-80 to the north.

The company states that, in addition to the discovered gas, exploration prospects in both blocks are also distributed within turbidite fans in the fold belt and in basin-floor fans within and beyond the foredeep; there are also indications of older carbonate deposits with potentially reef-like characteristics. These discoveries were drilled by Exxon in 2009 and 2010, and were not developed at the time primarily due to low gas prices and economic considerations.

Tetragon Energy is the operator of SC-80 and SC-81 with a 37.5% interest, with partners Sunda Energy, Philodrill Corp., and PXP Energy Corp.