In separate disclosures to the Philippine Stock Exchange, consortium members Oriental Petroleum and Minerals Corp. (OPMC), Basic Consolidated Inc., Philodrill Corp. and Anglo Philippine Holdings Corp. said that while they can exercise the buy-back option, they still have 30 days after the completion report is submitted by PNOC-EDC to the group before any decision can be made.
According to OPMC, it is still awaiting the full drilling report by PNOC-EDC "in order that a thorough evaluation of the reported gas discovery can be assessed and evaluated. Thereafter, a decision can be made to either buy-back our participation or not," the company told the PSE.
The Victoria-3 well is located within the GSEC (Geophysical Survey and Exploration Contract) 75 contract area. Prior to the farm-out to PNOC-EDC, it was owned by the abovementioned consortium along with Vulcan Industrial & Mining Corp. as the operator.
Shortly before the farming-out by the consortium, Vulcan sold to PNOC-EDC a portion of their participating interest. Thereafter, PNOC-EDC proposed to drill the Victoria-3 prospect with a $4.9 million budget.
In a unanimous decision, the consortium members decided not to participate in the project due to the high proposed drilling costs and instead allowed PNOC-EDC to take over 100 percent of the project with the condition that the partners be given a buy-back option that will include a premium over the drilling costs. – Conrado Diaz Jr.