Forum Energy needs $75 million to continue Recto Bank drilling

MANILA, Philippines - Forum Energy Plc., a UK-based oil and gas exploration company, needs around $75 million to continue with its drilling program for the Recto Bank, which showed improvement in its resources estimate.

On its website, Forum Energy said the report by Weatherford Petroleum Consultants on the interpretation of new 3D and 2D data acquired in the Recto Bank also known as Service Contract 72 (SC72) has “given the directors a better understanding of the Sampaguita gas field”.

Philex Petroleum Corp., led by the group of telecommunications magnate Manuel V. Pangilinan, holds a 64.45 percent direct and indirect stake in Forum Energy while former trade industry minister Roberto V. Ongpin’s Atok Big Wedge owns around 26 percent through Hong Kong-based Tidemark Holdings Ltd. 

Forum Energy has a 72 percent interest in SC72 with the remaining stake held by Monte Oro Resources & Energy Inc. of port magnate Enrique Razon.

 “The Weatherford Report shows an improvement in the resources previously known and supports the case to proceed with the drilling program. We will continue discussions with our major shareholders, our joint venture partner and our advisors to determine how the SC72 drilling program, which we anticipate will cost a total of $75 million, will be funded,” Forum Energy said.

Forum Energy said the report identified a new prospect in the North Bank, located north of the Sampaguita gasfield but still within SC72. Several potential drilling locations were likewise identified.

The Energy Department earlier said the natural gas resources in the Recto Bank could be bigger than that of Malampaya gas field off Palawan with about 2.7 trillion cubic feet of natural gas.

Malampaya generates around 40 percent of Luzon’s electricity requirements.

Forum Energy previously said that based on a 2006 study, the Sampaguita field had a potential of up to 20 trillion cubic feet of natural gas, or more than five times the initial estimates.

However, the company said the pre-drill estimates of resources are based on certain assumptions and the information and interpretations currently available.

It noted that there are no assurances these assumptions will be proven accurate.

Philex Petroleum was the market’s top gainer yesterday as investors cheered the latest development. It rose 50 percent to close at P24.30 each share.