Following the signing of the farm-out agreement in 2004 and assumption of Galoc Production Company [GPC] (a subsidiary of VITOL), as the new Operator, the pre-development activities have been initiated in accordance with the Galoc Plan of Development (POD) committed to and approved by the Philippine Dept. of Energy.

Galoc was discovered by Cities Service with the drilling of exploratory well Galoc 1 in 1981. In 1988 some 380,000 barrels of oil were produced from a six months extended production test conducted utilizing a floating storage facility. However, because of the perennially low price of crude (ave. of $15/bbl), it was deemed marginally viable to warrant further development at that time. Galoc has an estimated 23 Million barrels of recoverable oil based on a study conducted by Unocal in 2003.

PetroEnergy has a residual 1.034% interest for a full carried position.