Oil firm gets nod to do more tests-A A +A
Friday, April 4, 2014
THE Department of Energy (DOE) has allowed an Australian company to conduct further tests to determine if oil deposits in the southwestern town of Aloguinsan, Cebu can produce commercial quantities.
Gas2Grid Limited’s one-year program to conduct onshore oil exploration tests in the Malolos-1 Oil Field in Aloguinsan was approved by DOE central office last month.
The extended oil production testing program aims to gather technical information to confirm the commercial aspect of Malolos-1. Results will be used as basis for determining if Gas2Grid can be awarded a 25-year production.
But the Department of Environment and Natural Resources (DENR) 7 said the company has yet to submit requirements so its work will be granted an environmental compliance certificate under the Environmental Impact Asessment system.
Gas2Grid is expected to mobilize and conduct production testing starting next week, Labios said.
On Wednesday, Gas2Grid released a prospectus detailing the company’s investment. It also asked for additional investments from its shareholders to fund further explorations.
The funding will be used for drilling, geological and geophysical studies, partial repayment of debt, general working capital and other cost.
Published in the Sun.Star Cebu newspaper on April 05, 2014.