Vol. XXI, No. 160-A [ Business World Online ]
Saturday, March 15, 2008 | MANILA, PHILIPPINES
The Energy department has approved the plans of Trans-Asia Oil and Energy Development Corp. and its partners to drill one well each in the Eastern Visayas and Western Palawan basins.
In a disclosure, Trans-Asia said it has received the go-signal to proceed with the second sub-phase of Service Contract (SC) 51, in Cebu. One well, reportedly worth $3 million, has been committed by the consortium. The Argao and Cabilao prospects in Cebu have a combined potential of 200 million barrels of recoverable oil, the company has said.
Members of the SC 51 consortium are Trans-Asia (6.67%), Alcorn Gold Resources Corp. (9.32%), PetroEnergy Resources Corp. (4.01%) and Otto Energy Ltd. subsidiary NorAsian Energy Ltd. (80%).
Separately, Trans-Asia said a joint venture with Otto Energy Ltd. will also proceed with a second sub-phase in SC 55. This area, called the Marantao prospect, is estimated to contain 1.812 billion cubic feet of gas and 567 million barrels of oil. Seismic data were collected by various groups from 1970 to 1990, but no wells were drilled.
Trans-Asia holds 15% in SC 55, with the rest controlled by Otto of Australia. Both service contracts 51 and 55 are operated by Otto.
Otto, meanwhile, said it will drill one well in SC 50, or the Calauit oil field. According to Otto Energy’s estimates, the Calauit field under SC 50 has potential to produce 40 million barrels of oil.
"We plan to drill one well in each of SC 50, 51 and 55 before the middle of 2009. We are actively talking to rig companies and hope to announce drilling dates by July this year," Otto Chief Executive Otto Parks said.
Mr. Parks said the company will fund the exploration wells through a combination of its share of profits from the Galoc project and equity from farm-in partners.
Otto expects some $100 million from the Galoc project under SC 14, where it has an 31.38% stake in operator Galoc Production Co. First oil is expected from Galoc by next month.
Mr. Parks said the company is keen on its Philippine projects. "Otto very strongly believes in the petroleum potential of the Philippines and we are constantly assessing opportunities including new acreage."
