Sarangani Petroil’s exploration activities are situated within the southern region of the Philippines, in areas known for their strategic positioning relative to significant marine and geological features. These exploration zones are in proximity to some of the world’s most prominent oceanic trenches. The surrounding topography includes mountainous formations primarily composed of limestone and shale, with visible fossilized marine life embedded in the rock surfaces, indicating a rich geological history. These formations, shaped by ancient volcanic activity, are overlaid with pyroclastic deposits that have gradually formed the region’s topsoil. Photogeological analysis indicates that these mountain ranges extend into nearby marine depths.
Along the coastal areas, there are multiple natural gas seepages, some of which have been locally managed and covered with soil due to concerns over potential fire hazards. In one location, the gas has been utilized for cooking by local communities for over a decade. At another site, the initial discovery showed gas erupting in flames up to 8 feet high, suggesting significant subsurface pressure.
Rock sampling conducted in one of the exploration areas by a highly skilled geophysicist yielded an oil content of 0.35%. Follow-up analysis of additional samples confirmed the presence of oil within the site.
For years, the untapped potential of certain southern regions in the Philippines has remained largely underexplored as government attention has primarily focused on regions like Palawan, Sulu, Tawi-Tawi, and select areas in Luzon and the Visayas during the Philippine Energy Contracting Round (PECR).
While the primary exploration blocks offered are concentrated in Palawan, Visayas, and select Luzon locations, limited data availability has excluded other promising areas. This lack of data provides a strategic opportunity, allowing the company to nominate specific sites for inclusion in the next PECR round.
Once nominated, these sites become eligible for offer in the upcoming round. We anticipate that unavailable data will limit competition in these areas. However, if another party were to place a winning bid, as the original principal nominator, the company would retain the preferential right to match that bid.