FEP and BPMI signed Wednesday an agreement covering the acquisition by the former of the 100 percent shareholdings of Basic Consolidated Inc. (BCI) in BPMI, representing 50 million shares.
The acquisition, however, is still subject to approval by stockholders of BCI. A special stockholders meeting will be held on March 29 to approve the acquisition of BPMI.
Consideration was based on the assessment by third party experts on the estimated value of BPMI’s share in the oil reserves of the producing and exploratory areas covered by certain service contracts with the Department of Energy, wherein BCI is a participant.
FEP said the acquisition will complement its strong asset base in the Philippines, giving the company immediate oil production with tremendous potential to increase it through improved production technology.
The acquisition is expected to provide FEP with initial net production of approximately 40 barrels of oil per day, and varying interests in nine oil fields offering additional production and reserve potential.
BPMI owns participating interest in Nido (8.47 percent), Matinloc and Pandan (12.41 percent), North Matinloc (19.46 percent), Libro (28.6 percent), Tara (10 percent), Bonita (7.03 percent), West Linapacan (9.1 percent), Galoc (8.17 percent) and a 27.7 percent interest in Service Contract 41 situated within the Sulu Sea covering some 4,820 square kilometers.
FEP is an oil, gas and coal company focused exclusively on the Philippines. Its current assets include the highly promising Sampaguita gas discovery within the GSEC 101 (Reed Bank) offshore license area and the SC 40 (Cebu) license with known onshore and offshore gas and oil discoveries where the Libertad gas field was recently declared commercial.
The company also holds two coal operating contracts on Cebu island with estimated proven and probable reserves of 4.9 million tons.
FEP is listed on the Alternative Investment Market operated by the London Stock Exchange.