The members of the consortium include Alcorn Gold, Resources Corp., 46.60 percent; Trans-Asia, Oil and Energy Development Corp., 33.4 percent; and PetroEnergy, 20.06 percent.
The petroleum service contract inked with the DOE covers 44,00 hectares area in East Visayas.
The contract area consists of two blocks, an onshore-offshore block over Northwest Leyte and a deepwater block in Cebu Strait, between the islands of Cebu and Bohol.
The consortium will undertake a 250-kilometer seismic program over the Cebu Strait and an engineering study of the Villaba-1 gas discovery in offshore Northwest Leyte within the first 18 months of the contract .
The consortium has the option to drill exploratory wells within the seven-year exploration period.
Previously, the approval of applications for petroleum exploration contracts were put on hold pending clarification by the Supreme Court on the Mining Act.
Subsequently, the High Court declared that the Mining Act is constitutional, paving the way for a revitalized mining industry. The landmark decision revived interest in the petroleum exploration business.
The DOE approved in December last year Service Contract 45 to Hong Kong-listed South Sea Petroleum Holdings Ltd. for the exploration of oil and gas reserves over the Agusan-Davao Basin in Davao province.
The contract area covers 748,000 hectares of land for exploration and development. As operator, South Sea Petroleum will conduct geological and geophysical studies, including drilling of three exploratory wells. The company is investing some $2.75 million for the seven-year initial exploration period.