Interesting...

Interesting article!

http://www.sunstar.com.ph/davao/business/2012/09/25/coal-asia-buy-stake-venturoil-244658

Tuesday, September 25, 2012

COAL Asia Holdings Inc., holder of the country’s second largest coal reserves, recently struck a deal to purchase a stake in VenturOil, a company that expects to start producing up to 11,440 bbl of oil per day by 2013 which translates to a gross cash flows of over $315 million.

Coal Asia's entry into the very lucrative oil and gas business will be done through its affiliate Colossal Petroleum Corp.

Coal Asia is eyeing to acquire a stake in VenturOil's Service Contract 6 for both Cadlao and Bonita oil fields where VenturOil holds a 20 percent undivided interest and 12.88 percent interest, respectively.

An independent valuation of Venturoil's Service Contract 6 has placed the value at between US$96m - US$190m. The deal will be subject to the approval of the Energy department and the parties will have 90 days from the signing of an agreement to work out the salient terms of the buy-in.

The Cadlao field, located 40 kilometers off the northwest coast of Palawan island, was developed in 1981 for its rich oil deposits producing 11 million barrels of oil from two wells, but production ceased in 1991 due to high operating costs and low oil prices.

Reviving the potential of Cadlao, the Cadlao Redevelopment Project was carried out after independent reports certified remaining oil reserves at the site of around six million barrels.

VenturOil has already partnered with Australian oil firms Blade Petroleum and Raisama Energy for the completion of the Cadlao project. Under the terms of the partnership agreement, VenturOil’s 20 percent stake in the partnership is fully funded with Raisama Energy covering the entire share of Venturoil in the development cost of the Cadlao project.

Established in October 2006, VenturOil is an oil production and exploration company in the Philippines investing in fast cash flow assets and developing them into profitable assets in the shortest possible time at the most cost effective means possible.

Coal Asia remains to be a serious player in the energy sector as it targets more contracts to level up its game with other major players in the industry. It recently obtained both the Securities and Exchange Commission and Philippine Stock Exchange's approval for its P800-million initial public offering.