Trans-Asia Oil to intensify exploration activities in Visayas

MANILA, Philippines - To intensify its oil exploration activities, Trans-Asia Oil and Energy Development Corp. will undertake new seismic data gathering and geological studies in the Central Visayas petroleum block.

 In a disclosure to the Philippine Stock Exchange yesterday, TA Oil, together with its partner NorAsian Energy Ltd., said these activities would be part of the developments under Service Contract (SC) 69.

 TA Oil said the intensive studies are aimed at finding more prospects in the SC area. The company is the oil and power development arm of the Phinma Group.

TA Oil has a 30-percent participating interest in SC 69 while NorAsian, a wholly-owned subsidiary of Australian firm Otto Energy Ltd., controls the remaining 70-percent stake.

The consortium said the studies will help “elevate identified drillable prospects in the block to drillable status.”

The new exploration activities over SC 69 would form part of the third sub-phase of the block’s work program, expected to be carried out from February 2011 to August 2012.

The exploration block covers an area of 7,040 square kilometers surrounded by the islands of Cebu, Bohol and Leyte.

In May 2008, the Department of Energy (DOE) awarded SC 69 to Otto Energy and TA Oil. After intensive data gathering in the area, TA Oil said it expects to drill a well soon.

The consortium is expected to spend about $11.2 million to implement a seven-year work program.

Last June, TA Oil entered into an agreement with Frontier Gasfields Pty. Ltd. of Australia that would allow the latter an option to participate in the SC 69 contract with as much as a 15-percent stake.