Sacgasco Limited announced the results of an independent Contingent Resources estimate for the Cadlao Oilfield located in Service Contract 6B in the Palawan Basin offshore Philippines. Sacgasco holds its Cadlao Field interest in SC 6B through its wholly-owned subsidiary Nido Petroleum Philippines Pty Ltd. and references to Sacgasco in this announcement includes this subsidiary. The Contingent Resources estimate, was undertaken by RISC Advisory ("RISC") and the results are summarized in the table below. The Contingent Resources are for the Cadlao Field Redevelopment only and do not include any additional Contingent and Prospective Resources identified in SC 6B, e.g. Cadlao East Prospect. The Cadlao Field resources are classified as contingent resources rather than reserves. Phase-1 of the development (EWT) will initially be approved and progressed. Resources associated with the EWT can be
transferred to undeveloped reserves once this project is approved. RISC has reviewed and in general support the field re-development plans for Cadlao. Cadlao Oilfield: The Cadlao Oil Field within Service Contract 6B (SC 6B) is considered to be the most attractive development target from a number of discovered oil pools within Sacgasco's Philippines portfolio based on potential volume and value, well productivity, time to first cashflow, water depth and follow up potential. The field is a Miocene-aged carbonate pinnacle reef structure covered by recently reprocessed 3D seismic and located in water depths of 20 to 90 meters. It was discovered in 1977 by Amoco and produced 11.1
mmbls over a 10 year period between 1981 and 1991 before being shut while still producing 5,900 barrels of liquids (oil and water) per day, including 960 bopd. The interpretation of recently reprocessed 3D seismic has identified an updip attic oil volume which will form the basis for the EWT and subsequent full field development. The Production License for SC 6B ends in 2024 at which time the Joint Venture may elect to apply for an extension in the event commercial reserves remain to be produced. Cadlao drilling and EWT is planned for 2022 in a 2-well drilling program with the Nandino Prospect in Service Contract 54 (ref Announcement dated 3 March 2022); subject to DOE and JV approvals. In the event of a successful EWT at Cadlao and depending upon the field data obtained, a full field development may include up to 4 wells with a dedicated oil production facility. The East Cadlao Prospect, which is only 3km away, may also be drilled, tested and produced from any Cadlao development.