Gas2Grid Limited advises that Malolos-1 well operations are continuing with a daily cycle of wellhead pressure buildup followed by gas flaring and wellhead pressure reduction which has been associated with some oil production.
As previously advised Malolos-1 swabbing operations were suspended on the 17th June after sufficient production data had been gathered to support an application to the Philippine Department of Energy, to continue operations within SC 44 to establish the best completion technology and fully appraise the oil field.
Over the past few weeks the Malolos-1 well has been shut-in overnight resulting in the wellhead pressure building up to between 100-220 psi. The pressure build-up is associated with an increase in oil and natural gas in the tubing. The gas is flared daily to lower the wellhead pressure to zero and then shut-in again overnight. The gas is being sourced from solution within the oil, which has now flowed to surface under natural pressure.