Aussie firm seeks funding for Cadlao oil exploration

Australian oil firm Blade Petroleum Ltd. has tapped US-based Tristone Capital to help explore funding sources for the development of the Cadlao oil field in Northwest Palawan.

Tristone will specifically identify ways to supply the funding requirement for the re-development of the Cadlao field covered by Service Contract (SC) 6, Blade Petroleum said in a press statement.

It added it is optimistic fresh funding sources for SC 6 will “provide the opportunity to participate in its near term re-development which is set to deliver first oil in 2010.” 

Based on initial estimates, the company expects to extract more than three million barrels of oil on the first year of production in the area.

As major operator, Blade Petroleum owns 80 percent participating interest in SC 6. The other member of the SC is VenturOil Philippines Inc. holding the balance of 20 percent.

Blade Petroleum is currently focused on identifying international oil and gas assets ranging from exploration to near-term production.

Tristone Capital, on the other hand, is a global energy advisory firm that provides fully integrated investment banking, acquisitions and divestitures, and global equity capital markets service.

Blade Petroleum acquired its shares in the block from a number of local oil exploration and development companies in line with its plan to reactivate production from Cadlao.

The Cadlao field had previously produced 11 million barrels of oil in the 1980s until it stopped operations in 1991.

In 2007, Blade Petroleum entered into an agreement with Phoenix Energy Corp. to acquire its 44.94 percent equity interest in the block.

In July 2008, it bought Oriental Petroleum and Minerals Corp.’s 55.06 percent equity interest in the contract area.

In September last year, Blade Petroleum and VenturOil then signed a farm in agreement for SC 6.