Trans-Asia Petroleum Corp (TAPET) and its partner Frontier Gasfields Pty. Ltd will start its yearlong exploration at the Camotes Sea in Eastern Visayas on May 7, TAPET said in a disclosure to the Philippine Stock Exchange.
TAPET said it has notified the Department of Energy (DOE) the exploration will be under Sub-Phase 4 of the Petroleum Service Contract 69, which is either one exploratory well or a 50 square kilometer 3D seismic survey.
A single exploratory has a minimum expenditure of US $ 3 million while a seismic survey will cost about $ 2 million, the company said.
Service Contract 69 (SC69) is situated between the Islands of Cebu, Bohol and Leyte, and covers the eastern Visayan basin. It spans over a 7,040 square kilometers area.
The two firms have asked the DOE for a six-month extension of the Oct. 7, 2013 deadline to decide on its exploration sub-phase.
Based on the original deadline, the consortium is supposed to drill one exploration well from Nov. 7, 2013 to Nov. 7, 2014 and drill another exploration from Nov. 7, 2014 to Nov. 7, 2015.
TAPET notified the DOE that effective May 7, TAPET will be the new operator of SC 69 previously held by FGL. TAPET has 50 percent participating interest in SC 69.
Originally, Otto Energy Ltd., an oil and gas company listed at the Australian Stock Exchange, was among the proponents of the service contract besides TAPET and FGL.
But Otto Energy decided to leave the project to concentrate on other opportunities. With Otto’s withdrawal from SC 69, Trans-Asia Petroleum Corp. and Frontier Gasfields Ptg Ltd. remained as project proponents.