It aims to complete two wells in each gas zone encountered by the Malolos well 45 years ago.

On drill stem test in 1960, the well flowed at 5 million cubic feet per day at an 850-metre deep gas zone and 12.6 mmcfd at 1850m, the company said.

The combined 17.6 million cubic feet per day flow, if sustained, would be sufficient to fire a 40MW power plant, it said.

Upon success this time around, the company hopes to produce gas for electricity generation.

“In the sixties, gas had no commercial value, as gas-fired power generation as it is now used was not yet developed,” managing director Gundi Royle said.

“Furthermore, an electricity hungry market has developed some 30 km north of SC44 where Cebu City, which has 1.5 million inhabitants and is the second largest city in the Philippines, has a significant manufacturing centre.”

Gas2Grid said the December 1 start date was subject to all materials and equipment, which have already been sourced and ordered, arriving at the site.

The historic well has been opened up, the top cleaned out and a new wellhead fixed onto the casing, the company said. Following some minor work around the cellar, the Desco Rig 30, which is being adapted to oil field operations, will attempt reentry.

Gas2Grid, which holds a 100% interest in the 100,000 hectare licence, announced in August it was appraising the Malolos feature to establish a sustainable gas flow.

The Malolos feature, with potential gas resources of 50 bcf, is on trend with three other culminations - Butak, Barili and Esperanza - which have estimated gas resources of 240 bcf, based on assumptions from the Malolos-1, claimed Gas2Grid.

“There are another 10 leads in the licence, the most attractive of which have potential gas resources in the order of 150 bcf,” Royle said.

“The tax regime in the Philippines is benign and affords returns similar to those achieved in Australia.”

Japanese company Marubeni has entered into a deed of agreement to operate any power installation.