The Philippines Department of Energy announced that it had approved the SC6 Cadlao 2014 work programme, which would allow joint venture partners to move ahead with the project.

Partner VenturOil gave Peak the letter which was sent by the DOE, clearly granting “approval for the implementation of the 2014, as well as the extension of timeline for the drilling of two initial wells in March – April 2015 and “first oil” in June 2015”.

Peak said, however, it would be continuing arbitration with Cado.

“Peak will continue progressing the arbitration process which it recommenced with Cadco in March 2014,” the company said in a statement to the Australian Securities Exchange.

Peak has a 50% interest in the project, while Cadco holds a 30% interest and VenturOil holds 20%.

Peak Oil & Gas had received notice from Cadco that the farm-in agreement between the two parties had been terminated because Cadco was not satisfied “as to the availability of funding for the Cadlao project” by Peak.

Peak said its lawyers had notified Cadco that the purported termination was “invalid and ineffective”.

Cadlao sits in Block SC6 in the NW Palawan basin, and has gross proven and probable reserves of more than 6 million barrels