Offshore staff
(Asia-Pacific) - Forum Energy Plc has acquired interests in nine offshore oil fields and exploration prospects through the takeover of Basic Petroleum and Mining Inc., formerly held by Philippines-based Basic Consolidated Inc.
The assets cover nine offshore fields west of the Philippines, comprising:
Nido (8.47%), Matinloc and Pandan (12.41%), North Matinloc (19.46%), Libro (28.6%), Tara (10%), Bonita (7.03%), West Linapacan (9.1%), and Galoc (2.28%).
Forum also acquires a 27.7% interest in SC41 situated within the Sulu Sea and covering some 4,820 sq km, an area with proven hydrocarbon potential.
Project work will be managed by Forum's team in Manila.
The Nido and Matinloc fields have been producing since the early 1980s in 40 m of water, together achieving peak production of 50,000 b/d and currently
producing about 1,000 b/d.
Remaining proved and probable reserves in the two fields and nearby Galoc (currently under development), have been independently estimated at more
than 8.6 MMbbl.
Forum will pay $5 million over the next 12 months in a combination of cash and shares to acquire 100% of BPMI. Further cash payments of up to $2 million will become available if the acquired interests produce more than 5.4 MMbbl of oil.
BCI may also progressively receive cost recovery of up to $10 million, but not until Forum has recovered 100% of its invested capital.
Forum's existing assets, all in the Philippines, include the Sampaguita gas discovery within the GSEC101 (Reed Bank) offshore license area, and the SC40 (Cebu) license with known onshore and offshore gas and oil discoveries and where the Libertad gas field was recently declared commercial.
04/18/06
