Soon-to-be-listed Trans-Asia Petroleum Corp. (TA Petroleum) signed a deal with Frontier Energy Ltd. and Frontier Oil Corp. to participate in an oil exploration endeavor in Calauit in northwestern Palawan.
In a disclosure, TA Petroleum’s parent Trans-Asia Oil and Energy Corp. said TA Petroleum entered into a memorandum of agreement with Frontier Oil and Frontier Energy on Wednesday to participate in the exploration in Calauit oil field in northwestern Palawan through Service Contract (SC) No. 50.
According to the statement, TA Petroleum acquired a “10 percent participating interest in SC 50” under the deal and that details of the deal will follow once definitive agreements are finalized.
TA Petroleum has long been eyeing investments to further boost its revenues.
The Calauit field covered by SC 50 is expected to hold approximately 10 million to 13.2 million barrels of oil. TA Petroleum expects to generate profit from its investment in the Calauit oil field once it starts commercial production in April next year.
The company also has investments in SC 6 Block A and Block B in offshore northwest Palawan; SC 51 in Leyte, SC 52 in Cagayan Valley; SC 55 in west Palawan; and SC 69 in the Camotes Sea.
For the first half of this year, TA Petroleum said its net income fell 27 percent to P216 million from P297 million a year ago.
TA Petroleum will soon be listing by way of introduction 250 million shares of the company on the Philippine Stock Exchange. The shares will trade under the “TAPET” symbol.
It will be the fourth company to debut on the stock market so far this year after the listing by way of introduction of Top Frontier Investment Holdings Inc. and the initial public offerings of Double Dragon Properties Corp and Century Pacific Food Inc.
TA Petroleum is an oil exploration company fully owned by Trans-Asia Oil, which is an oil exploration holding firm under parent Phinma Corp.