Forum Energy allots $80M for 2 Sampaguita oil wells

MANILA, Philippines -  Forum Energy Plc, a UK-based oil and gas firm controlled by Philex Petroleum Corp., is spending $80 million to drill two wells at the Sampaguita gas field within the Recto Bank in the South China Sea.

“My recollection tells me that we are scheduled to do two wells this year. I mean the environment permitting, appraisal well and exploratory well, so one appraisal well with respect to what has been surveyed, and an exploratory well, in the property”, said Philex Petroleum chairman Manuel V. Pangilinan.

Forum Energy has a 70-percent stake in Service Contract 72, which covers some 8,800 square kilometers in offshore West Palawan. The area is estimated to contain 3.4 trillion cubic feet of gas. China, Vietnam, Taiwan and the Philippines are locked in a territorial dispute over the resource-rich Spratly Islands in the South China Sea.

“We’d like to pursue drillings if they can proceed without conflict. If our ships, drilling rigs will be allowed to come in, we don’t know,” Pangilinan said.

“So far it’s been quiet, so we’re assuming we can do our work because we’re committed to do our work programs with the goverment. We just want to drill and find out whether there’s gas , if there is, I think it benefits the Philippines immensely,” Pangilinan noted.

Forum Energy reported in January that the 2D and 3D seismic data it acquired last year was being interpreted by an international consultancy company, with the final report expected to be out by middle of the year.

Forum Energy earlier said the Recto Bank is at least 150 kilometers east of the Spratlys Islands and is closer to the island of Palawan. The contract area is also within the 200 nautical mile exclusive economic zone of the Philippines.

Forum Energy is 64.45 percent owned by Philex Mining, through its interests in FEC Resources Inc. and Philex Petroleum, and 25.95 percent by Atok-Big Wedge Com. The balance of 9.6 percent is held by minority shareholders based in the UK.