SC72 RECTO BANK (FORMERLY GSEC101)

The Recto Bank concession or SC72 is located in the West Philippine Sea west of Palawan Island. The licence is located to the southwest of the Shell-operated Malampaya Gas Field.   

SC72 (formerly GSEC101) was awarded to Sterling Energy Plc in June 2002 and covered an initial two-year term. Exploration in the area began in 1970 and in 1976 gas was discovered following the drilling of a well. In total, three wells have been drilled to date, all located at the south west end of the structure. Two of the wells tested gas at rates of 3.6 mmcf/d and 3.2 mmcf/d.

In April 2005, Forum acquired the concession from Sterling and became its operator.   

In 2008, Monte Oro Resources & Energy, Inc. acquired a 30% interest in the block upon payment of certain portion of the past costs and expenses of Forum.   

On 15 February 2010, the licence was converted to a Service Contract and the Company immediately performed geological and geophysical works to further evaluate the block and to fulfill its commitment to the government.   

In mid-January to mid-March 2011, Forum acquired more than 2,200km of 2D and 565 sq km of seismic data over the block.   

2D and 3D seismic interpretation was carried out by Weatherford Petroleum Consultants.  The study shows the Sampaguita Field to contain 2.6 trillion cubic feet (TCF) of contingent in-place gas resources and 5.5 TCF of prospective in-place gas resources.  There are also estimates made for possible condensates associated with the gas.   

On 28 July 2011, the Department of Energy (“DOE”) approved Forum’s entry to the second sub-phase of SC72, which has 24 months duration and the drilling of two (2) wells as the minimum work commitment.