PXP, partners see bigger gas potential in Sulu Sea

PXP Energy Corp. and its partners have discovered potential for greater gas reserves in the Halcon exploration prospect located in the Sulu Sea. The Philippine Stock Exchange filing revealed that the gross recoverable gas estimates for the prospect have been revised upwards. Previously projected at 2.6 trillion cubic feet, the gross 2U (P50) best estimate has increased to eight trillion cubic feet.

The gross 3U (P10) high estimate has climbed to 22.6 TCF, while the gross 1U (P90) low estimate has risen to 1.7 TCF. Additionally, the geological chance of success for the prospect has improved to 24 percent from 18 percent. These estimates were derived from a more thorough assessment of seismic data obtained from the Department of Energy and the involvement of a sedimentological expert.

The findings were released by Tetragon Energy Ltd., the operator of Service Contract 80, in which PXP holds a 12.5-percent interest. Tetragon, in its Australian Securities Exchange disclosure, compared recent discoveries in Indonesia and Malaysia to the geological characteristics of Halcon. The Australian firm is currently reprocessing 4,600 square kilometers of 3D seismic data to further evaluate the prospect and other potential gas fields.

The results are anticipated to be released early next year, with the complete dataset expected by mid-2027. Tetragon also plans to seek funding from international oil and gas companies to support exploration drilling, which could further validate the size of the gas resources and increase the project's value. The consortium includes The Philodrill Corp. and the United Kingdom's Sunda Energy Plc. Additionally, PXP-backed consortium has secured Service Contract 81, another petroleum contract in the Sulu Sea, jointly licensed by the Philippine government and the Bangsamoro Autonomous Region in Muslim Mindanao.