In January 2014, Dragon Oil signed a farm-in agreement with Nido Petroleum Philippines Limited (ASX: NDO) (“Nido”) for Service Contract 63 (SC 63) NW Palawan Basin, offshore the Philippines.

On 6 July 2014, as reported by our partner Nido, the Baragatan-1A well reached a depth of 2,681 meters Measured Depth (2,328 meters TVD sub-sea) having drilled through the primary Pagasa Formation reservoir objective.

The primary Pagasa Formation reservoir objective was encountered between 2,534 – 2,654 meters Measured Depth (2,209 – 2,305 meters TVD sub-sea) comprising primarily of limestones of poor to good reservoir quality with minor sandstones and siltstones. Preliminary Logging Whilst Drilling (LWD) log data recorded through this interval indicates the reservoir units to contain low gas saturations (C1 to C5) which did not warrant further evaluation or testing.

With respect to the two zones of potential interest encountered in the shallower Pagasa Formation, preliminary evaluation of available LWD data indicates the thin sandstones encountered within the gross interval 1,977 – 2,004 meters Measured Depth (1,785 – 1,805 meters TVD sub-sea) are potentially gas-bearing and the limestone encountered over the gross interval 2,207 – 2,236 meters Measured Depth (1,960 – 1,982 meters TVD sub-sea) contains low gas saturations. Both these intervals did not warrant further evaluation or testing.

The Baragatan-1A well has been plugged and abandoned. Dragon Oil exited the block effective from 23 November 2015.