Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 28

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 4
Chunk 28
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Upon award of this new SC, the first sub-phase will focus on further subsurface works in addition to the G& G studies conducted by the former SC 6A JV. These activities aim to establish a final well location and design for the Malajon Prospect and to appraise the Octon Discovery.

Cadlao Block (former SC 6B Bonita)

SC 6B had an area of 567 sq. km and contains the Cadlao Oil Field. The field was discovered in 1977 and produced about 11 MMBO from two subsea production wells from 1981-1991. The remaining recoverable reserves are estimated at 3.7 MMBO for proven reserves (1P) and 5.7 MMBO for proven plus probable reserves (2P) based on a 2012 study by Gaffney, Cline & Associates, Inc. Additionally, near Cadlao lies the East Cadlao Prospect, with estimated recoverable resources of 1.48 MMBO at the P10 level, and 1.17 MMBO at the P50 level.

In December 2021, Nido submitted a farm-in proposal to the JV to increase its participating interest in SC 6B from 9.09% to 72.727% and take over the operatorship of the Service Contract. A farm-in agreement (“ FIA”) was later executed on February 11, 2022, with FEPC’s interest being reduced to 2.4546% from 8.182% in exchange for the said carry in Cadlao’s development costs. Under the FIA, Nido will fund 100% of the drilling of a well, Cadlao-4, the conduct of an extended well test (“ EWT”), and the subsequent development of the Cadlao Field.

Nido proposes a two-phase redevelopment consisting of

  Phase 1: A 3 to 9-month EWT using a new single deviated well (Cadlao-4), a mobile offshore production unit (“ MOPU”), and either a floating storage and offloading (“ FSO”) vessel or a shuttle t...  
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  Phase 2: Further development of the EWT well and additional wells potentially substituting the MOPU for a small wellhead platform (“ WHP”) and storage barge.