The petroleum exploration unit of Trans-Asia Oil and Energy Development Corp. was officially listed by way of introduction in the local bourse yesterday.
Trans-Asia Petroleum Corp. (TA Petroleum), carrying the stock symbol “TAPET,” listed by way of introduction 250 million common shares with a par value of P1 in the main board of the Philippine Stock Exchange (PSE).
Under PSE’s Amended Rules on Listing By Way of Introduction, a company is allowed to enter the stock market without immediately having to sell shares to the public. This is allowed if the company is already listed in other exchanges or where the securities of an unlisted issue are distributed by way of property dividend, among others.
At an initial listing price of P4.60 per share, TA Petroleum, a subsidiary of the Phinma Group’s Trans-Asia, will have a market capitalization of P1.15 billion.
The listing also paved the way for the formal separation of Trans-Asia’s power generation and oil exploration businesses.
TA Oil shareholders owning 100 shares will have 2.55 shares in TA Petroleum.
Trans-Asia had already assigned to TA Petroleum its shares in several oil exploration projects such as SC 6 Block A in offshore Northwest Palawan, SC 51 in Northwest Leyte, and SC 69 in the Camotes Sea.
TA Oil Senior Vice President Raymundo A. Reyes said the move allows the company to increase capital base, which will be used for development projects.
“For example, if the gas exploration project in Cagayan is feasible then we will drill more wells, put up more gas turbines and so we will spend for that and other drillings,” he told The Manila Times in an interview after a press briefing.
Through stock offering, Reyes said the company is planning to raise P500 million before the end of year.
For his part, TA President and CEO Francisco L. Viray said the company has always been eyeing to create a vehicle for building the nation’s economy through self-reliance in energy.
By venturing into the capital market, Viray said they will be able to achieve flexibility in meeting investment opportunities and operational commitments of the company, especially if the exploratory activities result in confirmed reserves and high potential for commercial operations.
“We hope that our continuing efforts in upstream oil and gas exploration would bring our country closer to its much needed energy resources, in order to sustain economic growth and support nation building,” he added.
Through TA Oil, the company has been in business for more than 40 years and, in the process, has earned a good reputation as a prudent operator with strong management and technical teams highly regarded in the energy industry.
The group has gained experience over the years, being a part of the consortium that produced oil from the Cadlao and Tara fields in offshore Palawan in the 1980s, and in the North Matinloc field in the 1990s.