Trans-Asia cuts stake in 2 oil search blocks

MANILA, Philippines - Trans-Asia Oil and Energy Development Corp. is reducing its stake in two petroleum exploration blocks in the Southern part of the Philippines.

In a report, Trans-Asia Oil said that it has signed option agreements with Australian firm Frontier Gasfields Pty. Ltd.

The first involves the acquisition of a five-percent participating interest in Service Contract (SC) 55. “Said option may be exercised by Frontier 150 days from completion of drilling operations on the first exploratory well,” Trans-Asia Oil told the Philippine Stock Exchange.

The second agreement grants Frontier another option to acquire a 15-percent stake in SC 69 which may be exercised 182 days after it pays Trans-Asia Oil an undisclosed amount.

Trans-Asia Oil has a 15-percent and 30- percent participating interest in SC 55 and SC 69, respectively.

SC 55 covers a 9,000-square kilometer area on a regional oil and gas fairway that extends from the productive Borneo offshore region in the southwest to the offshore Philippines production assets northwest of Palawan. Meanwhile, SC 69 covers an area of 7,040 square kilometer in offshore Central Visayas surrounded by the islands of Cebu, Bohol and Leyte.

Australian firm Otto Energy Ltd. is the operator of the two exploration blocks where it controls an 85 percent and 70- percent stake, respectively.

Trans-Asia Oil is the oil and power development arm of the Phinma Group. The company is primarily into conventional fuel-based power generation, petroleum exploration and production, mining and retail electricity trading.

Earlier, Trans-Asia Oil said it was interested in investing up to $300 million in 10 wind power projects with an estimated total capacity of 400 megawatts (MW).

The wind power projects include the 26-MW in Paracale and Vinzons in Camarines Norte; nine MW in Silang, Cavite; nine MW in Bauan and San Luis, Batangas; 19 MW in Calatagan, Batangas; 10 MW in Infanta, Quezon; nine MW in Calauag and Lopez, Quezon; 10 MW in Calauag, Quezon; nine MW in San Joaquin, Iloilo; 10 MW in Dumangas, Iloilo; and 12 MW in Anda and Guindulman, Bohol.