ACE Exenor gains larger stake in SC 55 through recent acquisition

The company’s recent purchase of several thermal generation assets from AC Energy [ACEN 9.33 3.32%] included ACEN”s 30.65% stake in Palawan55 Exploration & Production Corporation (Palawan55), which owns 75% of the SC 55 deep sea exploration rights to 9,000 square kilometres of ocean territory off the shore of Palawan.

With ACEN’s stake, ACE Exenor [ACEX 39.00 susp] now owns 100% of Palawan55, and, therefore, all 75% of Palawan55’s rights to SC 55, which is thought to contain considerable oil and gas reserves.

The remaining 25% of SC 55 is owned by Pryce Gases [PPC 5.68 0.35%].

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ACEX’s plans to drill a well in SC 55 were delayed last year due to the pandemic, but the company will be required to do something very soon as the 1-year extension will expire in April of this year.

The appointment of ACEX’s new President, with substantial deep-water drilling operations experience, now makes a lot more sense if ACEX is planning to aggressively ramp up activity in the SC 55 area starting with this “obligatory” well. 

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.