Australia-listed Tetragon Energy has awarded a seismic reprocessing contract to DUG Technology as it begins the exploration phase of its offshore oil and gas program in the Philippines.
The contract covers the reprocessing of four existing 3D seismic surveys spanning more than 4,000 sq km across Service Contracts (SC) 80 and 81, together with selected 2D seismic data.
The work is valued at $1.45 million, equivalent to around $590,000 net to Tetragon.
The seismic processing will be carried out by Perth-based DUG Technology using its advanced imaging technology and global supercomputing network. Initial fast-track seismic products are expected within six months, while the final processed dataset is scheduled for delivery within 12 months.
Tetragon said the reprocessed seismic data will be used to better define the prospectivity of the offshore permits and support discussions with potential farm-in partners.
The company is the operator of the SC-80 and SC-81 offshore permits with a 37.5% interest. The joint venture also includes Sunda Energy, Philodrill and PXP Energy. Tetragon also holds a 100% interest in, and operates, the onshore SC-82 permit in the Philippines.
According to the company, the four 3D seismic surveys, originally acquired between 2005 and 2013, would have cost more than $20 million to acquire. The joint venture spent several months locating the original data tapes, transporting them to Perth and transferring the data onto modern storage media before commencing the reprocessing program.
“The award of this contract is a pivotal step in our strategy to create substantial value because the results will underpin discussions with potential farm-in partners.
“By outlining prospects and the existing discoveries in the permits, we will be able to demonstrate the immense upside in these permits to major oil and gas companies,” said Conrad Todd, Managing Director of Tetragon Energy.
“DUG has a long-standing working relationship with members of the Tetragon Board and senior management. We are delighted to have the opportunity to work with Tetragon on this important project and look forward to supporting its successful delivery,” added Matt Lamont, Managing Director of DUG Technology.
AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week