MANILA, Philippines - Forum Energy Plc is scoutingfor a partner for Service Contract (SC) 72 off Palawan to be able tocontinue exploration activities in the area. a top company officialsaid.
“The company is also assessing potential partnerships in SC 72 toaccelerate the development of the project, although there are noproposals currently in place,” Forum chairman Robert Nicholson said in areport.
But he stressed they are optimistic that SC 72 would continue to be one of the company’s major achievements.
“The completion of our first sub-phase work program over SC 72 willbe a milestone for the company, since the last data acquisition whichwas concluded over five years ago. We expect that this data will giveus significant additional information that will enable the company tobetter assess the various development scenarios andpotential partnership options for the SC 72 block at a critical timein the development of this important asset,” he said.
Forum (through its 100-percent interest in Forum Philippine HoldingsLtd and Forum (GSEC101) Ltd). holds a 70 percent equity in the SC 72licence. Philex Mining Corp. (through its interests in FEC Resources Incand Philex Petroleum Corp.) controls 64.45 percent of the share capitalof Forum.
SC 72, covers an area of 8,800 square kilometers and contains the Sampaguita gas discovery and a number of additional leads.
In 2008, a joint venture was formed with Monte Oro Resources andEnergy Inc. (MORE) which qualified it for the Filipino ParticipationIncentive Allowance (FPIA). Through a 30-percent farm-out to MORE, thejoint venture receives 7.5 percent of gross revenues shared with thegovernment.
In February 2010, the exploration licence was converted into a service contract.
Forum Energy had been stressing that SC 72 is not situated inthe disputed Spratlys Group of Islands. It said the contract is locatedin the Reed Bank basin which is at least 150 kilometers east of thedisputed Spratlys Island and is closer to the island of Palawan.
Reed Bank has been subject of numerous exploration campaigns in thepast under the Philippine contractual regime. The first petroleumcontract in he area was awarded by the then Ministry of Energy in 1975.
Forum (through its 100-percent interest in Forum Philippine HoldingsLtd. and Forum (GSEC101 Ltd.) holds a 70 percent equity in the SC 72licence. Philex Mining Corp. (through its interests in FEC ResourcesInc. and Philex Petroleum Corp.) controls 64.45 percent fo the sharecapital of Forum.
Philex provided a financing facility worth $10 million that enabled Forum to progress the development of SC 72.