Manila, Philippines - Trans-Asia Oil and Energy Development Corp. has extended its option to acquire a minority stake in a oil and gas block in Cagayan Valley.
In a disclosure to the Philippine stock exchange, Trans-Asia said it sealed an agreement with upstream petroleum firm Frontier Oil Corp. that amended the farm-in option signed in January.
“The amendment agreement extended the period during which Trans-Asia may exercise its option to acquire 10 percent interest in Service Contract (SC) 52 until 90 days,” Trans-Asia said.
The local energy firm said it will wait for the completion of the re-test operations on the Nassiping-2 well.
Late in May, results of oil drillings confirmed the presence of hydrocarbons in the oil block.
This prompted the SC 52 consortium to hire a global consulting firm to analyze the data collected during the $5-million exploration program.
The consortium is led by project operator Frontier Gasfields Pty. Ltd. of Australia with a 30-percent stake, followed by subsidiary Frontier Oil Corp. (50 percent) and E.F. Durkee & Associates (20 percent).
Trans-Asia, which is into oil exploration, cement manufacturing, coal trading and power generation, has the option to acquire 10 percent of the block upon payment of an agreed amount.
SC 52 covers 96,000 hectares in Piat-San Jose in northern Cagayan Valley. The Nassiping-2 is an existing well containing a previously discovered but untested gas discovery.
It was drilled in 1984 and penetrated a substantial, gas-bearing limestone section but was not flow-tested.