HOUSTON -- Palau Pacific Exploration (PPX) has secured an option to farm into a one-million acre drilling concession on the North Block in the Republic of Palau. This is equivalent to a 75% working interest. PPX also is inviting investors to participate in a limited portion of the drilling program. On completion of the farm-in, PPX and its shareholders will hold a 66% net revenue interest.
The prospect was defined by 140 mi (225 km) of high-resolution seismic in 1997. The data was reprocessed in 2007 and resulted in the identification of multiple reefs and overlapping anomalies, the company reports. H.J. Gruy and Associates identified two potential oil reservoir zones on the prospect in a 2008 report.
Potential reservoirs, determined from seismic sequence stratigraphy, are thick Miocene age carbonate reef systems. Geochemical analysis confirms the presence of thermogenic hydrocarbons. Amplitude vs. offset gradient analysis indicates shallow gas, the company says.