MANILA – Trans-Asia Oil & Energy Development Corp has exercised its option to acquire a minimum stake in Frontier Oil Corp’s exploration block in offshore Busuanga, Palawan.
In a disclosure to the Philippine Stock Exchange, Trans-Asia said that subsidiary Trans-Asia Petroleum Corp signed a memorandum of agreement with Frontier Oil Corp for the acquisition of a 10 percent participating interest in Service Contract (SC) 50.
The company did not disclose the terms of the agreement, which was an offshoot of a deal inked in 2005 that gave Trans-Asia the option to purchase the said amount of interest in SC 50.
SC 50 is a 5,000 square meter exploration block that covers the Calauit field in offshore Northwest Palawan.
Citing initial studies undertaken in the contract area, Frontier earlier said the Calauit field has an upside potential to contain in excess of 14 million barrels of oil.
The company targets to start commercial production from the field in April 2015.
Besides SC 50, Trans-Asia Petroleum has interests in four oil and gas service contracts: a 6.82 percent interest in SC 55 West Palawan, 6.67 percent interest in SC 51 in northwest Leyte, 6 percent interest in SC 69 in the Camotes Sea and a 2.334-percent stake and 14.063-percent stake in SC No. 6 Block A and Block B in offshore northwest Palawan, respectively.
Trans-Asia Petroleum will list 250 million shares on the local bourse in August 28 at an initial listing price of P4.60 per share, valuing the company at P1.15 billion. It will carry the symbol “TAPET.”
Read more: http://www.interaksyon.com/business/94131/trans-asia-petroleum-exercises-option-to-buy-into-calauit-oil-field