Dragon Oil (LON:DGO) has confirmed that an exploration well, offshore Philippines, failed to find commercial hydrocarbons.
The company has a 40% stake in the Baragatan 1 exploration well, which was drilled to a depth of 2,681 metres in the Palawan basin.
Baragatan 1 encountered a series of reservoirs that were found to be of ‘poor to good’ quality, though analysis concluded that gas saturation was low. As a result it was deemed that further evaluation and testing was not warranted.
"The exploration drilling in the Philippines did not discover commercial hydrocarbons,” said chief executive Dr Abdul Jaleel Al Khalifa.
“While with this well we fulfilled our work obligation, we aim to integrate the information provided by the Barragatan-1A well into the regional geological picture and assess our future interest in the block.”