Trans Asia, NorAsian Energy sign farm-in agreement

MANILA, Philippines - Trans-Asia Oil and Energy Development Corp. and NorAsian Energy Ltd (NEL) signed yesterday a farm-in agreement in service contract 55 in offshore Palawan.

In a disclosure to the Philippine Stock Exchange (PSE), TA Oil said NorAsian acquired an 8.18-percent participating interest in the service contract.

TA Oil did not disclose how much was the acquisition deal for the said shares.

In late 2009, TA Oil started with its data gathering at the SC 55 in West Palawan.

The SC 55 consortium commenced a 590-square kilometer 3D seismic survey in its contract area in offshore West Palawan . TA Oil has a 15-percent participating interest in SC 55.

SC 55 covers 9,000km2 in the south west Palawan Basin. It is located on a regional oil and gas fairway that extends from the productive Borneo offshore region in the southwest to the offshore Philippines production assets northwest of Palawan .

Aside from TA Oil, Otto Energy owns an 85-percent working interest in SC55. Otto Energy Ltd., an Australian oil and gas firm holds the remaining 85 percent of the contract. Otto acquired its 85-percent interest in SC55 in 2006, through the purchase of NorAsian Energy Ltd. Otto Energy was supposed to farm-out 60 percent of its interest in SC 55 to BHP Billiton Petroleum Pty. Ltd. but negotiations fell through.

TA Oil is the energy arm of the Phinma Group. The company continues to be active in several exploration projects, particularly in large and high-potential areas. At present, the company is represented in four service contracts.