Aussie firm to launch $10-million oil venture in Mindanao

Jun. 04, 2007

By Rose Palacio

The Australian oil and gas exploration firm Tap Oil Ltd. will spend about $10 million (P480 million) for the development of Service Contract (SC) 41 in Sandakan Basin in Mindanao.

Paul Underwood, the companys managing director, said they are actively pursuing new opportunities in Southeast Asia.

He added that they will continue to pour in capital into their Philippine exploration business. Our activities in the Philippines are an important part of the companys forward strategy.

Tap Oil has entered into a farm-out agreement with Salamander Energy Plc. for SC 41. Under the deal, Salamander will earn a 35 percent interest in SC 41 by contributing to the forward work program while Tap Oil will retain a 50% interest and control of operations.

In addition, the SC 41 joint venture has agreed to increase the size of the 2007 3D seismic survey from 300 kilometers to a minimum of 600 kilometers.

SC 41 is an area of approximately 4,820 square kilometers with water depths ranging from 200 to 2,000 meters.

Salamanders entry is expected to enhance the capabilities of the joint venture in identifying drillable prospects based on the 3D seismic survey starting this month.(PIA XI Dispatch/rbp)

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