Market cap of almost exactly $8 million...(appendex 3B - 115.5 m shares)
Certainly can't be said of this stock, that over exuberance has run riot.
Success by the Japan/Kuwait consortium...right next to GGX block in the Phillippines....would surely make the GGX permit worth what....$20 million.(extra 18 cents)
A decision in regard to commercial production is due soon.
GGX have the 3D seismic (see story below)....the same subsurface geology extends (at the location of the JAPEX drill) a couple of kms into the GGX block.....
By Jhunnex Napallacan Inquirer First Posted 03:40am (Mla time) 06/09/2007
CEBU CITY -- An oil exploration project by an Australian firm in the Cebu-Bohol Strait before the end of the month has alarmed a local environmental group, which calls it a calamity “worse than a typhoon” for fishermen.
Vessels and fishers must stay 8.5 kilometers away from the exploration ship for about a month. Diving and swimming are also prohibited within 10 km from it.
The Environmental Legal Assistance Center (Elac) has warned the government of possible harm to the fishermen and to marine life in the strait. But the Department of Energy downplayed the apprehension that hundreds of fishermen in some coastal towns in Bohol and Cebu would be displaced.
Antonio Labios, DOE-Visayas director, also assured the public that the seismic survey—the first phase of the oil exploration—would not damage marine species and corals. The survey will determine the profile of the seabed for possible deposits of oil or gas.
The Arroyo administration is pursuing oil exploration as one of its programs to make the country energy-independent and lessen fuel importation. The Visayan Sea, especially the Tañon Strait (between western Cebu and Negros), the Cebu-Bohol Strait and the Cebu-Leyte Strait were reported to have an abundance of untapped oil or gas resources.
Last year, the Philippine government, through the Japan Petroleum Exploration, conducted a seismic survey at the Tañon Strait. Actual drilling is expected to be made later this year pending the release of an environmental compliance certificate (ECC) from the Department of Environment and Natural Resources.
‘Certificate of non-coverage’
Australia-based NorAsian Energy Ltd. will undertake the oil exploration in accordance with a service contract granted by the government, through Energy Secretary Rafael Lotilla, in July 2005.
On May 24, Allan Arranguez, regional director of the Environment Management Bureau, issued to NorAsian a certificate of non-coverage—meaning the project did not need an ECC for the seismic activity. The certificate, however, stated that EMB would closely monitor the exploration ship’s operation to ensure compliance with Philippine environmental laws.
An ECC will only be needed during the actual drilling, Labios said.
Officials of NorAsian, DOE and the Bureau of Fisheries and Aquatic Resources had already consulted with Governors Gwendolyn Garcia of Cebu and Erico Aumentado of Bohol about the project, he said.
Labios said that agricultural offices in the towns of Argao, Dalaguete, Alcoy and Boljoon in southern Cebu, and in the towns of Panglao, Maribojoc and Loon in Bohol had been tasked with mounting an information drive among fishermen, which would be directly affected by the seismic survey.
The Philippine Coast Guard and the Maritime Industry Authority will coordinate with all passenger and cargo vessels regarding alternative routes for them to take so as to avoid the survey area. Actual seismic survey was expected to start June 16 or June 19.
Off-limit areas
According to documents distributed by NorAsian during its information drive on Monday, the MV Pacific Sword will be carrying out a 2D and 3D seismic survey in offshore Cebu Strait. It will travel at the speed of 5 knots while towing two 6-km cables 5 meters below.
Orange buoys equipped with flashing lights will be attached to the cables.
The vessel cannot immediately stop because of its restricted maneuverability.
It will also tow a marine noise source that emits sounds at regular intervals and submerge in water a device that emits sound energy with an intensity of 200 decibels.
“For safety reasons, all fishing vessels, passenger ferries and commercial vessels are requested to stay 8.5 kilometers away from the MV Pacific Sword to avoid damage to their vessels and fishing equipment,” NorAsian said. “Swimming and diving activities must not be conducted within 10 kilometers of the moving vessel.”
One of the documents stated that fishermen must voluntarily clear out their “payaos” or fish pens before the survey. They were given assurance that they would receive compensation for the dismantled pens.
Environment, livelihood
Raul Barbarona, Elac executive director, noted that there were no clear guidelines to ensure payment of compensation or protection of marine life.
Moreover, the affected communities will not have enough time to evaluate the effects of the seismic survey, which will start next week. He said consultations were started only on Monday.
Elac was also worried that the exploration project covers wide areas where fisherfolk are technically banned. If fishermen could not go to the strait for one month because of the seismic survey, then the government must give them alternative livelihood, but so far, there is no offer, Barbarona said.
The ship will emit a loud sound that could drive away the fish, including whales and dolphins, along the Bohol Marine Triangle in Panglao, he said.
The Elac director said he wanted to know if the steel cables towed by the vessel would not destroy the marine resources there.
“We view this as a calamity. In fact, if a typhoon is a calamity, this is even worse than a typhoon,” Barbarona said.
But Labios said “it is not as destructive as what they (environmentalists) think.”
The steel metal to be towed is not that long and could not reach the seabed and destroy corals and other marine species, he said.
A 200-decibel sound is not loud enough to drive away the fish, he said. “The sound of a dynamite used in fishing is even louder than that,” he added.
Labios said NorAsian was aware of the marine reservation in Panglao. Only a portion of Panglao seawater will be covered by the survey, which will focus on an area between Loon, Bohol and Argao, Cebu, he said.
GGX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
