South China acquires 100% of AGP International

MANILA, Philippines - Publicly-listed South China Resources Inc. has acquired 100 percent of AGP International Holdings Ltd., a foreign holding company that invest in the Philippines.

In a disclosure to the Philippine Stock Exchange, South China said its board has approved the investment in AGP in a meeting held on Dec. 21.

According to South China, the funds needed for this investment will be sourced from internally generated funds.

South China is a Filipino company originally incorporated and registered as South China Petroleum and Exploration Inc., primarily to undertake oil and gas exploration, development and production.

South China was listed in Jan. 5, 1994 at the Philippine Stock Exchange. It is one of the few remaining companies formed and listed in the early 90s. In fact, it is the only one that remains active in petroleum exploration today.

In 1995, South China diversified into other businesses. It has ventured into real estate development by acquiring 50-percent ownership in a property (Pilipinas Plaza Building) located along EDSA and Chino Roces Ave. in Makati City.

South China has also ventured into banking and telecommunication. In 1997, it acquired 24.5 percent of Premiere Development Bank under a share subscription agreement and later converted these into fully paid shares for a nine-percent interest in the bank. In 1998, also under a subscription agreement, the company invested in a 32.4-percent interest in Bell Telecommunications Philippines Inc.

It was converted in 2003 from an exploration company with diversified businesses into a holding company. This allows for the company to engage in various businesses of finance, industry and commerce, a strategic move to ensure its growth and security.

In 2007, a third party capital infusion into Premiere Bank allowed their acquisition of a 50-percent interest in the bank, thus leaving South China with its current interest at 4.81 percent.

The oil exploration firm has been actively involved in the review and exploration of the different sedimentary basins in the Philippines.

It remains a significant player in oil exploration in the country by operating prudently through the reduction of upfront costs in frontier exploration. South China has proven that the exploration strategy and the technical concepts using data driven models are effective in opening up frontier areas like Northeast Palawan and Sulu Sea.

It has one of the most promising areas in the country in terms of petroleum potential. Its joint agreement with SPEX (Shell Philippines Exploration B.V.) and KUFPEC (Kuwait Foreign Petroleum Co.) to enter into Service Contract No. 60 in 2006 has paved the way for further exploration in an area where the potential for large hydrocarbon accumulations is deemed to exist.

South China is also in partnership with a local consortium and foreign companies led by Tap Oil Ltd., an Australian company, under Service Contract 41 in the Sandakan Basin in Sulu Sea. SC-41 was signed with the DOE on Sept. 1, 1998.

In the quest to continue exploration in areas where the company has an edge in terms of data and technical conceptualization, South China participated in the Department of Energy’s Philippine Energy Contracting Round 3 (PECR-3). South China, together with operator UK company Pitkin Petroleum Ltd., submitted a bid for Area-4, a block that covers the offshore Mindoro-Cuyo with an area of 1.164 million hectares.

In January 2008, the company sold its 50 percent interest in Pilipinas Plaza Building for P600 million.

The Company is now actively seeking out opportunities to invest in its core business, diversify, sustain growth, and acquire revenue.