by Alena Mae S. Flores – November 20, 2015 at 11:30 pm
from Manila Standard
Philex Petroleum Corp. said unit Pitkin Petroleum Plc. decided to surrender its ownership in an onshore exploration block in Peru.
Philex Petroleum said in a disclosure to the stock exchange that Pitkin, its 53-percent owned subsidiary, did not join sub phase two in Peru Block 27, located onshore of Peru, “and has surrendered said block to the Peruvian government.”
Company officials did not respond to queries regarding the decision to surrender the service contract.
Philex Petroleum, the oil and gas arm of Philex Mining Corp., has been suffering from losses due to inability to drill service contract 72, located offshore northwest Palawan, due to an ongoing territorial dispute with China.
Pitkin Petroleum earlier announced it decided not to pursue its plan to take a 70-percent interest in service contract 6 A (Octon Block) in northwest Palawan.
Pitkin reassigned its participating interest back to the farm-out partners after completion of the phase one work program on Dec. 31, 2014.
Pitkin signed a farm in agreement with the Octon Block partners in 2011 to earn a 70-percent participating interest in exchange for funding a three-phase work program, with the option to exit at the end of each phase.
The department approved the transfer of block operatorship to Pitkin in December 2011. Pitkin proposed to acquire new 3D seismic data and started preliminary seismic evaluation of the northern section of the block using existing available data as the operator of SC 6 A.
The other consortium holders of the SC 6 A block were The Philodrill, Alcorn Gold Resources Corp., Anglo-Philippine Holding Corp., Forum Energy Philippines Corp., PetroEnergy Resources Corp., Philex Petroleum and Trans-Asia Oil and Energy Development Corp.
The Octon Block has been previously estimated to contain up to three million barrels of oil reserves and 34 billion cubic feet of natural gas reserves, of which three billion barrels are recoverable.
The Octon field was discovered in January 1991 and successfully appraised in April 1992. The field has a potential for a low-cost development.