DOE approves re-assignment of interest in Palawan oil well from Pitkin Petroleum

• Source: http://www.interaksyon.com/business/113001/doe-approves-re-assignment-of-interest-in-palawan-oil-well-from-pitkin-petroleum
• Wednesday, June 24, 2015 4:30 pm

(Philippines News Agency)

MANILA - The Department of Energy (DOE) has approved the 70 percent re-assignment of interest for Service Contract 6-Octon Block from Pitkin Petroleum Plc. back to the original farmors.

”We received advice from the SC 6 Block A Operator that the Department of Energy has approved the re-assignment of participating interests to the farmors resulting from the withdrawal of erstwhile farminee, Pitkin Petroleum Plc,” Trans-Asia Petroleum Corporation said in a disclosure from the Philippine Stock Exchange (PSE) Wednesday.

Trans-Asia Petroleum noted its participating interest in SC 6 Block A has reverted to 7.78 percent following the DOE’s approval.

Last February, Philex Petroleum Corporation reported impairment losses worth P338.5 million due to its subsidiary Pitkin Petroleum Plc., having exited the project in Service Contract 6A.

Pitkin Petroleum was supposed to develop phase 2 of the project for the 70 percent stake, according to a 2011 farm-in agreement, but decided to back out early this year.

Located in offshore Northwest Palawan, SC 6A covers 1,081 square kilometers, mostly in the shallow waters of north west of the province.

The block is located only 10 kilometers from the Galoc oil field, and 50 kilometers away from the Camago-Malampaya oil and gas field.

Eight wells have been drilled within the SC6A area, with several wells having found oil and gas.

Other companies that have a participating interest in the project are Philodrill Corp, PetroEnergy Resources Corp, Forum Energy Philippines Corp, Anglo Philippine Holdings Corp, and Alcorn Gold Resources Corp.