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PETROENERGY’S STAKE IN WEST LINAPACAN SERVICE CONTRACT NOW AT 4%



PetroEnergy Resources Corporation’s (PetroEnergy) participating interest in Service Contract 14C2 (SC 14C2) in West Linapacan now stands at 4.137% following the Department of Energy’s (DOE) approval of the re-assignment of the 58.29075% participating interest previously farmed out by the SC 14C2 farmors to Pitkin Petroleum PLC (Pitkin) in May 2008. Pitkin then farmed out 29.14537% of the interest and the operatorship of the service contract in 2011 to RMA West Linapacan Pte Ltd (RMA). With the exit of RMA and Pitkin from West Linapacan, the remaining members of the SC14C2 consortium, apart from PetroEnergy, are original Filipino Farmors Cosco Capital Incorporated Philippines, Forum Energy Philippines Corporation, Linapacan Oil Gas & Power Corporation, Oriental Petroleum and Minerals Corporation, Phoenix Gas & Oil Exploration Corporation and The Philodrill Corporation, as well as Perth-based Nido Petroleum Limited.

In a letter released on March 27, the Department of Energy (DOE) informed RMA that because of RMA’s failure to complete its financial requirements for its committed work obligation to the DOE, RMA’s and Pitkin’s participating interests were now re-assigned back to the Filipino Farmors. Prior to the re-assignment, PetroEnergy’s interest in the service contract stood at 1.03425% and it was carried free of all exploration costs leading to the drilling of two exploration wells up to first commercial oil.