Gas2Grid Limited says that the production testing at Malolos-1 has to date gathered sufficient data to support an application to the Philippine Department of Energy ('DOE') to allow the Company to continue work under SC 44 to establish an appropriate completion technology for sustained production and full appraisal and development of the oil field.

Over the past few weeks, the lower and the upper oil bearing sandstones were successfully tested separately. The upper sandstone continued to produce oil individually although no significant improvement in oil production rate was recorded. The lower sandstone recorded a significant increase in production rates at an equivalent of over 100 barrels of oil per day although it was also associated with a significant increase in water production indicating proximity to the oil-water contact.

Tags: Gas2Grid Limited