Frontier Oil Corp. is timing its P2.2-billion initial public offering (IPO) toward the end of 2013, as it moves toward commercially exploiting major projects in northern Luzon and in Palawan with partners Trans-Asia Oil and Energy Development Corp. and BHP Billiton.
The oil and gas exploration firm may list on the Philippine Stock Exchange (PSE) in November, Frontier CEO Kristoffer Fellowes said.
“What we have is basically opening up the sector (of) oil and gas exploration. It’s too fundamental to the economy to be concerned about fluctuations.”
A preliminary prospectus filed at the Securities and Exchange Commission showed Frontier Oil was planning to offer to the public about 883.626 million common shares at P2.50 apiece. The document also said net proceeds (after deduction of estimated fees and expenses) could reach P2 billion.
Frontier Oil has stakes in four of the 26 active exploration service contracts (SCs) currently in place with the Department of Energy. Of the four, gas-rich SC52 (hosting the Nassipping Field) in the Cagayan Basin at the northern-most part of Luzon and SC50 (hosting Calauit Field) in offshore northwest Palawan are closest to production. Each area has flowed gas and/or oil as a result of drilling campaigns.