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Sacgasco (ASX:SGC) appoints subsidiary as operator in Philippines

ASX News, Energy
ASX:SGC      MCAP $4.678M
15 December 2021 11:39 (AEST)

Source: Sacgasco

Sacgasco (SGC) has appointed its wholly-owned subsidiary, Nido Petroleum Philippines, as technical operator for its SC 6B and Cadlao redevelopment projects.

Nido has secured a sale and purchase for the projects.

Under the agreement, Nido has reportedly paid $250,000 to the previous operator of SC 6B Manta Oil Company. Upon their withdrawal from SC 6B Manta will hand over its proprietary database which Nido says will greatly enhance and accelerate its planned development activities.

Manta has also waived its right to exclusivity surrounding the project, allowing for farm-in discussions between Nido and the remaining joint venture parties to progress. Additionally, through Nido, Sacgasco will see its working interest increase by 6.3 per cent to 9.1 per cent.

The company says Nido intends to submit a plan of development to the Philippines Government early next year. This will reportedly include an extended well test to be drilled in Q2 2022 for data collection, resource volume confirmation and early cash flow.

According to the company, given its proximity to Cadlao, there is also the opportunity to drill the East Cadlao prospect.

Shares were up 7.69 per cent, trading at 2.8 cents at 11.38 am AEDT.

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