Trans-Asia Oil to pursue seismic survey in Visayas

MANILA, Philippines - Trans-Asia Oil and Energy Development Corp., the oil and power development arm of the Phinma Group, will continue theseismic survey on Service Contract (SC) 69 in the Visayan Basin.

In a disclosure to the Philippine Stock Exchange (PSE), Trans-Asia Oil said the survey on the exploration area will be jointly undertaken with NorAsian Energy Ltd., a subsidiary of Australian firm Otto Energy Plc. Ltd.

According to Trans-Asia Oil, the survey will be part of the second sub-phase which will be undertaken from May 7, 2009 to Nov. 6, 2010.

“The second sub-phase entails a commitment of either at least 50 square kilometers of 3RD seismic survey with minimum $2 million expenditures or at least 750 line km of 2D seismic survey with minimum $1 million expenditure,” Trans-Asia Oil said.

The company said an appropriate report will be sent to the Department of Energy (DOE) on the second sub-phase process soon.

“The consortium will send a formal notice to the Energy Department to this effect soonest,” it said.

SC 69 70 percent owned by NorAsian Energy while the remaining 30 percent is controlled by Trans-Asia Oil.

The exploration contract was awarded by the DOE to the consortium in May 2008.

Based on initial studies, SC 69 has more than 20 identified structures with potential for both oil and gas.

The area is specifically located in offshore Central Visayas and surrounded by the islands of Cebu, Bohol, and Leyte.

Under the seven-year work program, the group will continue to conduct seismic survey in the area and a drill well in the area. The project cost is estimated at $11.2 million.

Otto Energy said earlier that an exploratory drilling well could commence as early as 2010.

“The block (Area 8) lies between the two sub blocks of SC 51, where NorAsian already has an 80-percent working interest,” it said.

“The area offers significant follow up potential in additional structures if NorAsian has success in the initial drilling in SC 51,” Otto Energy said.