MANILA, Philippines - Trans-Asia Oil and Energy Development Corp. of the Phinma Group, is investing P136 million in the initial public offering (IPO) of Frontier Oil Corp., the company said in a disclosure to the Philippine Stock Exchange (PSE).
Frontier is embarking on the IPO to raise money to finance various projects.
In a separate statement, Frontier welcomed the investment of Trans-Asia’s wholly owned subsidiary, Trans-Asia Petroleum Corp.
“We have always worked closely and constructively with the management of Trans-Asia and look forward to jointly advancing our mutual oil & gas interests and in further developing new opportunities within the industry for the benefit of both investors and the Philippine energy marketplace,†said Frontier Oil chief executive officer Kris Fellowes.
He said Trans-Asia’s investment is a strong indication of support and belief in Frontier’s oil and gas initiatives, including its offshore and onshore projects located across the Philippines’ three most prospective hydrocarbon basins.
Frontier is embarking on an IPO early next year, after deferring the public offer plan originally slated in the latter part of 2013.
The firm hopes to raise as much as P2.21 billion from the sale of up to 883.63 million common shares at a maximum price of P2.50 a piece to fund drilling of Service Contracts 50 and 52 in northwest Palawan and Cagayan Valley, respectively.
Frontier holds 100 percent working interest in SC 50, which is estimated to contain some 13 million barrels of oil. It also holds 100 percent working interest in SC 52, which is estimated to contain contingent gas resource of as much as 231.91 billion cubic feet.
The Calauit field in SC 50, meanwhile, is estimated to contain 10 million to 13.2 million barrels of oil.
Fellowes earlier said that based on studies made on the Calauit oil field, the area can produce 5,000 barrels per day for two and a half years.
Frontier’s listing is part of the company’s strategy to become a significant oil and gas player in the country.
Frontier Oil is an oil and gas exploration firm which has a 20-year history in the Philippines through various oil and gas project. It also has a subsidiary involved in projects in China.