MANILA, July 30 (PNA) — Pryce Gases Inc., a subsidiary of Pryce Corp., has farmed in Thursday US$ 3.22 million for a 10-percent stake in the future earnings of Hawkeye-1, which is located in Service Contract 55-Southwest Palawan.
”PGI will pay US$ 3.22 million equivalent to 10 percent of the Well Costs for the drilling and testing of theHawkeye-‐1 exploration well within SC 55,” Pryce Corporation said in a disclosure from the Philippine Stock Exchange (PSE).
With Pryce Gases Inc. entering the Hawkeye consortium, the Filipino firm bared the Filipino stake in Service Contract 55 will increase to 16.82 percent.
Pryce Gas also beamed its entry entitles the Filipino companies to a “Filipino participation incentive allowance,” which requires a Filipino stake of 15 percent, that grants them to have a 7.5 percent of gross proceeds from the crude production.
Otto Energy Philippines Inc., operator of Service Contract 55, has also reported it has signed a farm-in option agreement with Pryce Gases Inc. for a 10 percent working interest in SC-55.
”Pryce Gases, a subsidiary of the Philippine Stock Exchange listed entity, Pryce Corporation, has agreed to a farm-in option to SC55 to earn a 10% working interest by participating in the drilling of the Hawkeye-1 exploration well,” Otto Energy Ltd. said Thursday in a disclosure at the Australian Stock Exchange.
Meanwhile, Otto Energy Ltd. stressed it is fully funded for the drilling of Hawkeye-1, which is estimated to cost around US$ 30-35 million.
Otto added that the well will start drilling during the coming weekend after the Maersk Venturer drilling rig has been placed over the required location.
Last May, Otto announced the drilling procedures will last until August 15, 2015.
Otto Energy operates SC 55 at 93.18 percent, while Palawan 55 Exploration and Production Corporation, a subsidiary of Trans-Asia Petroleum Corporation, has a 6.82 percent participating interest in the petroleum block.
Otto Energy is an international oil and gas company, engaged in exploration, development and production. It has projects in the Philippines and Tanzania.
Pryce Corp., on the other hand, is engaged with property holding and real estate development, hotel operations, selling industrial gases and importing and distributing liquefied petroleum gas (LPG). (PNA)