|
Brixton Energy & Mining Corporation
|
|
 Brixton is a wholly owned subsidiary of the Company engaged in exploration and development of energy related resources. In May 2008, its Coal Operating Contract No. 130 was converted into Coal Operating Contract for Development and Production No. 130, for a period of 10 years, followed by another 10-year extension. The contract covers two coal blocks in Sibugay, Zamboanga. The final ore reserves cannot be disclosed yet pending the issuance of a technical report by a competent person as required under the Philippine Mineral Reporting Code.
In November 2008, Brixton obtained the Environmental Compliance Certificate for the advancement of the coal project to development stage in 2009, with an estimated capital requirement of P280 million. Expenditures on this project to December 31, 2009 amounted to P149.8 million, with P100 million spent during the year. Commencement of full commercial operation is expected in 2010.
|
|
Philex Mining Corporation
|
|
Service Contract No. 41 (Deepwater South Sulu Sea)
 Lumba-Lumba-1A well, labeled as dry well with hydrocarbon, was plugged and abandoned. The findings of the well drilling operation suggested the presence of a petroleum generation system within the Service Contract area. This prompted the consortium to conduct further re-evaluation of the 3D seismic data. The re-evaluation using the services of an Australian company, DownUnder Geosolutions (DUGS), will involve the integration of the subsurface information out of the well which is anticipated to contribute in the reduction of risk in subsequent drilling works.
SC41 has reached Extension 1 past its 10th year anniversary. During the extension, the consortium is expected to commit to drill another exploration well before May 10, 2010. Given the stiff schedule, the consortium will endeavor to extend the period before making the commitment. The consortium is also committed to support the on-going farm-out efforts by Tap Oil as operator in order to properly manage and distribute the associated exploration.
PMC maintains 2.26% working interest in the Service Contract.
Service Contract No. 6 (Cadlao Block-NW Palawan)
Blade Petroleum, as the operator, secured the approval of the Department of Energy (DOE) of its field development plan on June 17, 2009. This is a requirement relative to the fifteen (15) year final extension granted to the consortium in 2008.
The development plan includes the drilling of two production wells estimated to cost about US$100 million. The wells are anticipated to drain between 1.0 to1.5 million barrels of oil projected to sell for about US$ 2 per barrel less than current Dubai crude price.
A 4.95% Over-Riding Royalty Interest (ORRI) from the field’s gross production is maintained and shared equally by PMC, Philodrill Corporation and Trans-Asia Oil & Energy Development Corporation.
Service Contract No. 6A (Octon Block-NW Palawan)
The consortium was granted the final fifteen (15) year extension of SC6A (Octon Block) production term by the DOE. The production term extension was granted subsequent to the formal request by the consortium and upon presentation of the work program that will be carried out by Vitol GPC Investment SA as a prospective farminee into the block.
The extension is effective as of March 1, 2009 with five (5) year phases entailing annual work program and budget that are subject to DOE’s review and approval. During the extension period, the consortium is likewise committed to pay annual training fund for the DOE personnel.
To date, Vitol GPC Investment SA is conducting continued technical evaluation to provide a reasonable exploration model for the Octon discovery. The output of the technical evaluation is needed prior to the conduct of developmental works that is likely to include drilling of new wells. The technical evaluation is running parallel to the on-going work involving Phase-2 of the Galoc field development. The consortium hopes to see a long-term synergy in getting both Galoc and Octon fields producing side by side.
|
| Philex Petroleum Corporation |
|
Philex Petroleum Corporation (PPC) was incorporated in 2007 as a wholly-owned subsidiary of Philex Mining Corporation (PMC). In June 2008, 49% of Philex Petroleum was acquired by Anatolian Property BV, a corporation whose shareholders are funds managed by Ashmore Investment Management Limited. In July 2009, the Company purchased the 49% interest of Anatolian Property BV, giving back the Company full control over PPC which currently holds 39.14% of Forum Energy plc (FEP), a UK-based company listed at the Alternative Investment of the London Stock Exchange. FEP is an oil exploration company owning participation interests in several service contracts in the Philippines, particularly GSEC 101, now converted to Service Contract 72, covering the Sampaguita natural gas discovery in northwestern Palawan. As FEC also owns 25.84% of FEP, the total holdings of the Company in FEP through PPC and FEC would be 64.98%.
In 2008, Philex Petroleum also acquired 6.4% of Pitkin Petroleum Ltd (Pitkin), an international upstream oil and gas company focused on Tertiary basis primarily in the Pacific Rim Region, with operations in Vietnam, the Philippines, Peru and the U.S.A. It is involved throughout the exploration and production value chain, with interests in production, a potential redevelopment project and an active exploration program. In June 2009, Pitkin reported the discovery of oil in the Ca Rong Do (Red Emperor) well in Block 07/03 offshore Vietnam which flowed oil at a combined rate per day of 3,265 barrels together with 8.1 million standard cubic feet of gas.
On Pitkin’s Philippines Service Contract 53, a 200-kilometer 2D seismic survey has recently been completed by contractor BGP, Inc. of China. SC 53 covers an area of 7,240 square kilometres, mostly onshore and adjacent to the Palawan Basin, which hosts all the producing oil and gas wells in the Philippines. Pitkin operates 3 Service Contracts in the Philippines which comprise a total area of approximately 20,000 square kilometers, both onshore and offshore. The investment in Pitkin brought the Philex Group’s total investment to 21% taken together with the holdings of Philex Mining Corporation.
Philex Petroleum also acquired 21% of PetroEnergy Resources Corporation, a local company listed in the Philippine Stock Exchange engaged in oil exploration and in providing technical services to companies exploring for oil in the Philippines.
|
|