The company recently signed afarm-in agreement with Nido Petroleum Philippines for Service Contract 63 (SC 63), which gives Dragon an initial 40% interest.
There is an option to acquire later an additional 10% from The Philippine National Oil Co. - Exploration Corp. (PNOC-EC) on the same terms and conditions.
SC 63 covers an area of 10,560 sq km (4,077 sq mi) and is currently in sub-Phase 2b of the exploration program. In a previous phase the partners acquired 754 sq km (291 sq mi) of 3D seismic, leading to identification of the Baragatan prospect in around 50 m (164 ft) water depth.
Planned drilling depth is 3,390 m (11,122 ft). The primary reservoir objective is sandstones of the Miocene Pagasa formation.