Exploration progresses in Mindoro oil prospect

THE GROUP handling Service Contract (SC) 53 located onshore Mindoro province aims to drill the second of two planned exploration wells in the first half of next year, according to a regulatory filing.

In its third-quarter financial report, The Philodrill Corp. -- which holds 22% stake in the project -- said the operator of SC 53, Pitkin Petroleum Plc., is already preparing for drilling the second well at the Progreso prospect.

“With regard to the planned drilling activity, Pitkin continued with the preparation for the drilling of Progreso-2 well which is programmed for the first half of 2014,” the report read.

Philodrill said that Pitkin -- which holds a 35% stake in SC 53 -- has progressed in securing approvals for the planned drilling activity.

“The operator has already achieved some success in securing approval of tribal communities and the National Commission for Indigenous People for its various activities on the block,” the company noted.

Last August, Basic Energy Corp. reported that the consortium of SC 53 was set to drill the Progreso-2 well, the second of two exploration facilities under the work program.

Basic Energy has a 3% interest in the SC. The other consortium members are Resource Management Associates Ltd. (35%); and Anglo Philippine Holdings Corp. (5%).

Basic Energy -- which is involved in various oil exploration activities -- also holds minority stakes in SC 47 located offshore Mindoro province and SC 41 in Sulu Sea.

The company recorded a P9.31-million net loss as of end-September compared to the P187.66-million net income in the same nine months last year. Revenues fell 91.3% to P20.23 million from P232.48 million, while costs and expenses dropped by 8.4% to P29.54 million from P32.25 million.

On the other hand, Philodrill -- which is engaged in oil, gas and mineral exploration and development -- holds interests in SC 6A, SC 6B, and SC 14 -- all located in waters northwest of Palawan; as well as SC 41 in Sulu Sea.

The firm’s profit dropped to P208.77 million in the nine months to September from P212.65 million the previous year. Revenues fell 6.46% to P499.26 million from P533.73 million, while costs expenses grew by 2.22% to P321.72 million from P314.74 million.

Shares of Philodrill closed at 3.7 centavos apiece on Friday last week, unchanged from Thursday, while those of Basic Energy added 3.90% to 24 centavos each from 23.1 centavos. -- Claire-Ann Marie C. Feliciano

source:  Businessworld