Palawan55 Exploration and Production Corp., a subsidiary of ENEX Energy Corp., will extend the drilling of wells under Service Contract 55 by 18 months after receiving the Department of Energy or DoE approval.

In a stock report on Tuesday, Enex Energy said Palawan55, based on the letter from DoE, will have a total of 23 months, or the five remaining months plus an 18-month extension, from the lifting of force majeure to drill the committed well.

Under force majeure

The DoE had previously determined that there was justification to place SC 55 under force majeure from 6 December 2022, until the national government issues clearance to proceed with exploration activities in the West Philippine Sea.

Based on the DoE estimates, the SC 55 in Palawan has approximately 2.2 trillion cubic feet of natural gas.

Earlier this year, ENEX Energy expressed an interest in developing a 1,100-megawatt gas-fired power plant in Batangas.

ENEX Energy

However, ACEN, which owns ENEX Energy, has stated that it will not be involved in ENEX's fund-raising activities for the project since it has committed to becoming a purely renewable energy company by 2025.

ENEX has a 50 percent economic interest in Batangas Clean Energy for the development of the natural gas-fired power plant with the other 50 percent interest held by Singapore-based firm, Gen X Energy which is owned by American private equity firm Blackstone.