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- Sacgasco (SGC) farms out half of its interest in the Nandino oil prospect in the Philippines to joint venture (JV) partner Blue Sky International
- Blue Sky will earn an extra 36.25 interest in the prospect by funding Sacgasco’s 72.5 per cent working interest share of well costs
- Following the farm-in, Sacgasco will hold 36.25 per cent of the prospect and Blue Sky will own 48.75 per cent, with UK-based Halo Oil owning the remaining 15 per cent
- Sacgasco Managing Director Gary Jeffery says the company’s working interest in the prospect is now fully funded through to the completion of a logging program at Nandino
- SGC shares steady at 2.8 cents
Sacgasco (SGC) has farmed out half of its interest in the Nandino oil prospect in the Philippines to joint venture (JV) partner Blue Sky International.
Blue Sky will earn its extra interest in the prospect by funding planned drilling work at Nandino.
Under the terms of its farm-in, Blue Sky has agreed to pay Sacgasco’s 72.5 per cent working interest share of well costs to bolster its interest in the prospect by 36.25 per cent.
Sacgasco will subsequently hold a 36.25 per cent interest in Nandino through two subsidiaries and Blue Sky will own 48.75 per cent of the prospect. The remaining 15 per cent is held by UK-based Halo Oil.
Sacgasco Managing Director Gary Jeffery said with Blue Sky committing to the farm-in deal, Sacgasco’s working interest in the prospect was fully funded for the dry-hole cost of the well through to the completion of a wireline logging program at Nandino.
“Blue Sky is an international operator of note, with some 6500 barrels of oil equivalent per day (boepd) of operated gross oil and gas production (approximately 4,300 boepd net to Blue Sky entities),” he said.
“Blue Sky has significant operating experience in diverse jurisdictions from onshore North America to offshore Indonesia.
“The farm-in firms up Nandino’s place on (Sacgasco’s) 2022 drilling program and we are now full speed ahead on the execution of the program, with the site survey expected shortly, and we are working closely with Blue Sky on sourcing long lead items for drilling.”
Sacagsco said it was targeting a mean, unrisked prospective resource of 27 million barrels of recoverable oil from the Nandino well.
Gross drilling costs for the prospect were estimated at between US$13 million and US$17 million (A$18 million and A$23.3 million).
The company said production costs would be firmed up once drilling and services contracts were drawn up and executed throughout the year.
SGC shares were steady at 2.8 cents at 1:32 pm AEDT.
