MANILA, Philippines - Frontier Oil Corporation has acquired 100% of the 5,000 sq km Service Contract 50 (SC 50) in northwestern Palawan, including the proven Calauit oilfields.
The company is expanding its projects ahead of a P2- billion initial public offering planned in the second quarter of this year.
"The acquisition of the Calauit field is another component of the Company's strategy to become a significant oil and gas player, based on a range of Philippine projects with proven potential and substantial capacity," Frontier Oil Corporation CEO Kristoffer Fellowes said in a statement.
The Calauit fields has been the subject of comprehensive technical analysis over an extended period, and "proving the existence of a compelling commercial quantity of recoverable oil."
Further in-depth studies have indicated a potential in excess of 14 million barrels of oil, far greater than previous assessments of between 3.1 million and 7 million barrels of oil.
"These studies have also allowed the Company to engineer the intended development wells to target the most efficient drilling locations and optimize production rates accordingly," the company said.
Also, Frontier Oil has completed a detailed review into its existing Service Contract 52 "Nassipping" project. A compilation of a Competent Person's Report attributed a volume potential of 58 billion cubic feet of gas for Nassipping.
The company said further information will be given about SC 52 soon.