Frontier Oil Corp. said it will hire a drilling rig from UMW Oil and Gas Corp. Berhad of Malaysia to develop the Calauit oil field northwest off Palawan province.
Frontier Oil said it was set to formalize a lease agreement with UMW on Monday.
The company previously held a 100-percent stake in Service Contract 50, which covers Calauit oil field, but farmed out its 10-percent stake to Trans-Asia Petroleum Corp., a subsidiary of Trans-Asia Oil and Energy Development Corp. recently.
Frontier Oil completed a geotechnical survey at the intended drilling location for the Calauit oil field. Core samples taken during the four-day operation will determine the integrity of the surface formation ahead of the arrival of a jack-up rig by the first quarter 2015.
SC 50 is estimated to contain 10 million to 13.2 million barrels of oil. The company expects to start commercial production from Calauit oil field by April 2015.
Frontier was supposed to conduct an initial public offering last year to raise P2.2 billion to fund exploration projects but decided to withdraw its plan.
The company is presently negotiating for funding sources, including funding opportunities from Canada and the US and other markets to finance its oil and gas projects in the Philippines.
Funds will also be used to develop the Nassipping 2 gas discovery under SC 52 in Luzon.
Read more: http://manilastandardtoday.com/2014/09/12/frontier-to-start-oil-drilling-in-palawan/