Leyte third district board member Rolando C. Piamonte said NorAsian Energy can proceed with the drilling of the Duhat-1 exploratory well in San Isidro town.
Residents of Sitio Kalunasan had withdrawn a petition to prevent the company from exploring the area.
NorAsian Energy's concession covered by Service Contract No. 51 encompasses around 332,000 hectares over the northwest Leyte basin.
According to Otto Energy, drilling is scheduled to start in March and could cost $2.5 million to $3 million.
The drilling of the Duhat-1 exploratory well is part of the current sub-phase of the contract.
The Department of Energy earlier approved the extension of the sub-phase until July to allow the well to be drilled.
Leyte first district board member Roque A. Tiu said NorAsian Energy representatives appeared before the provincial board to present their company profile as well as plans to conduct oil exploration in the province.
