ACE Enexor Inc. is banking on the vaccine push here and abroad to bolster gas exploration and development activities in the country.
“We are cautiously optimistic that the rollout of vaccines worldwide would help stimulate commercial activity to fuel revival of the upstream industry. The signs in the first quarter of 2021 are promising,” ACE Enexor Chairman Eric Francia said.
“Oil prices have rebounded to pre-Covid levels and drilling activities, particularly in the region, are slowly picking up. We are hoping the trend would be sustained in the near term,” said Francia during ACE Enexor’s annual stockholders’ virtual meeting held on Tuesday.
ACE Enexor, through subsidiary Palawan55 Exploration & Production Corp., is the operator of Service Contract 55 (SC 55), which covers 9,880 square kilometers in offshore West Palawan.
Palawan55 has 75-percent participating interest in SC 55 while Pryce Corp. unit Pryce Gases Inc. holds the remaining 25 percent.
In September last year, ACE Enexor filed a request to the Department of Energy (DoE) for a one-year force majeure due to the far-reaching effects of the ongoing pandemic to the global upstream petroleum industry. The request is pending with the agency.
Barring any unforeseen events, Francia reiterated ACE Enexor’s commitment to undertake definitive drilling planning in the second quarter of 2021.
Raymundo Reyes, ACE Enexor president and chief operating officer, said preparation of a drilling proposal for the exploratory well is underway and will be submitted to the DoE once completed.