Sacgasco partners with PNOC EC for Philippine service contract 6B development

Sacgasco Limited (ASX: SGC) has announced a significant development in the Philippine energy sector, partnering with PNOC Exploration Corporation (“PNOC EC”). This collaboration involves a Farm In Agreement for PNOC EC’s entry into the Philippine petroleum Service Contract 6B (“SC 6B”), following clearance from the Philippine Office of Government Corporate Counsel (OGCC).

PNOC EC’s Strategic Acquisition in SC 6B

The Farm In Agreement outlines PNOC EC’s acquisition of a 20% participating interest in SC 6B. This deal includes the drilling and extended well test of the Cadlao-4 well, marking the first stage in the redevelopment of the Cadlao Oil Field (“Cadlao”) in SC 6B. The transfer of interest from Nido Petroleum Philippines Pty Ltd (“Nido”), a wholly-owned subsidiary of Sacgasco, to PNOC EC is pending approval from the Philippine Department of Energy.

Sacgasco’s Commitment to Energy Development

The execution of this agreement fulfills a key condition precedent to the Share Purchase Agreement for the divestment of Nido by Sacgasco. This transaction is set for completion upon shareholder approval. Kane Marshall, Managing Director of Sacgasco, emphasized the importance of this partnership in progressing the redevelopment of Cadlao, especially in the context of current global energy security concerns.

Sacgasco: Focused on Global Energy Opportunities

Sacgasco, an Australia-based energy company, is keenly focused on under-explored and world-class oil and gas opportunities near under-supplied markets. The company’s activities span across conventional oil and gas exploration and production in the Sacramento Basin in California, Alberta Province in Canada, and offshore in the Philippines. Sacgasco’s diverse portfolio includes natural gas, oil producing wells, hydrogen, and helium, targeting supply to local markets in California and Canada, and the expanding Asian market.