LONDON (Alliance News) - Red Emperor Resources NL on Monday said the USD25 million Hawkeye-1 exploration well offshore the Palawan Basin in the Philippines failed to intersect a commercially viable amount of hydrocarbons.
The well was targeting two reservoirs and intersected both. The company said the first reservoir was of "variable quality" and contained hydrocarbons, but not enough to be deemed commercial, whilst the second reservoir may have contained hydrocarbons, but said the "poorer quality" of the reservoir meant it would also not be commercial.
"While the Hawkeye-1 exploration well has proven the existence of hydrocarbons in SC55, the hydrocarbon size discovered appears to be at the low end of expectations and not likely economic to develop. Hawkeye-1 will now be plugged and abandoned with results from the well to be analysed with respect to other prospects, including Cinco, in the license that potentially share the same charge source," said the company.
The unsuccessful Hawkeye-1 well cost the company a total of USD25 million, and the company said it will have a cash balance of around USD12 million once operations at the well are completed.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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