Phinma unit gets stake in gas-rich SC50

MANILA, Philippines–Newly listed Trans-Asia Petroleum Corp. (Tapet) of the Phinma Group has formalized its acquisition of a minority stake in gas-rich Service Contract 50 (SC50) in offshore Palawan from Frontier Oil Corp.

In a disclosure to the Philippine Stock Exchange, Tapet (spun off from Trans-Asia Oil and Energy Development Corp.) said it had signed a farm-in agreement with Frontier Energy Limited (FEL) and FOC, a deed of assignment with FEL, and a loan agreement with FOC.

The agreements were executed to formalize a memorandum of agreement entered into on Aug. 22 by Tapet, FEL and FOC.

Tapet said the assignment of a 10-percent participating interest in and under SC50 was subject to the approval of the Department of Energy (DOE). The company has a number of oil and gas service contracts with the DOE, having inherited the projects from its former parent Trans-Asia.

SC50 is expected to start commercial production in the summer of 2015, giving Tapet an immediate revenue stream.

The company had been looking for projects which would yield near term revenues and one of these blocks is SC50 in offshore Busuanga, Trans-Asia Oil SVP for energy resources development Raymundo A. Reyes Jr. said earlier.

Trans-Asia has assigned to Tapet its interests in three service contracts: SC6 Block A and SC6 Block B in offshore northwest Palawan, SC51 in northwest Leyte, and SC69 in the Camotes Sea.