Drillers settle dispute on farm-in deal
Four companies holding interests in Service Contract 51 off the Visayas basin have forged an agreement with Australian firm Swan Oil and Gas Ltd. to settle a dispute concerning a previous farm-in contract.
In separate disclosures to the Philippine Stock Exchange Friday, Trans-Asia Oil and Energy Development Corp., PetroEnergy Resources Corp. and Alcorn Gold Resources Corp. said the settlement agreement would grant Swan Oil the right to acquire a 90-percent participating interest in the South Block of SC 51.
SC 51 covers two blocks (north and south), one of which runs along northwest Leyte Peninsula, while the other is along Cebu Strait.
It was not disclosed how Swan Oil’s farming in on the South Block of SC 51 would affect the interests held by the three firms and its other partner, NorAsian Energy Ltd., the local unit of Otto Energy Ltd.
Trans-Asia Oil has a 6.67-percent participating interest in the whole SC 51 license; PetroEnergy has 4.01-percent stake; Alcorn Gold has 9.32-percent interest, and operator Otto Energy with 40 percent. Swan Oil held the remaining 40 percent.
