Recto Bank holds huge gas reserves, says operator Forum Energy

The results of a seismic test at the disputed Recto Bank, which will identify possible drilling locations over a gas field in the area, are to be presented this week, Philex Mining Corp. and its unit Philex Petroleum Corp. said in a joint statement to the Philippine Stock Exchange on Tuesday.   UK-based Forum Energy Ltd. issued a separate statement to the London Stock Exchange on Monday, saying it “confirms that the interpretations of new 3D and 2D seismic data acquired over Service Contract 72 (SC 72),” otherwise known as Recto Bank, “is scheduled to be presented in final form to the Board later this week.”   Philex Petroleum holds 64.45 percent in direct and indirect interest in forum.   According to Forum Energy, results from 3d seismic surveys performed by independent consultant Count Geophysics Ltd. in 2006 “indicated a mean volume of 3.4 trillion cubic feet (TCF) of gas in place from sands tested in the three wells drilled to-date…”   The 2006 3D seismic survey showed the gas in place is about 21 percent more than the reserves in nearby Malampaya.   The 2D and 3D seismic data aim to identify “optimal drilling locations” over the Sampaguita Gas Field, known to hold huge gas reserves like the Malampaya Natural Gas Field located in off shore Palawan, Forum noted on its website.   The Department of Energy (DOE) on Monday confirmed that the gas reserves in Recto Bank are bigger than those in Malampaya.   Shell Philippines Exploration B.V. is the lead operator of Malampaya natural gas field.   Energy Undersecretary Jay Layug said it is likely that the natural gas in Recto Bank exceeds the 2.7 TCF gas in place in Malampaya.   Recto Bank, internationally known as Reed Bank, is part of a territorial dispute between the Philippines and China involving the Spratly Islands in West Philippine Sea. Layug said Philippine ownership of Recto Bank is beyond dispute, considering it is only 70 nautical miles west of Palawan, and closer to the mainland than the Scarborough Shoal.   Forum Energy said Recto Bank was awarded to Sterling Energy Plc. in 2002, and exploration in the area began in the 1970s when gas was discovered with the drilling of a well.   In April 2005, Forum Energy Plc acquired the service contract from Sterling and became its operator. —With Jon Lindley Agustin/VS, GMA News