Making Sense on PXP vs TA Petroleum

Philex Petroleum (PXP)

TA1

PXP has 2.27% interest in the largest operating oil field in the Philippines, Galoc oil field. The oil field produced 2.4 million barrels with an estimated 1.61 million barrels expected to be produced in 2012. [1] Proved and probable reserve remaining is estimated to be 4.4 million barrels. [2]

 

TA Petroleum (TAP)

TA2

Note: An Operator is the party that will take all the costs and risks in the drilling.

 

Sources:

  1. Forum Energy Plc Annual Report 2011, p. 3, http://www.forumenergyplc.com/DocumentLibrary/FOR-16846-AR11-web.pdf
  2. Otto Energy Annual Report 2012, p. 15, http://www.ottoenergy.com/irm/content/annualreport/AR2012.pdf
  3. Otto Energy Annual Report 2012, p. 10-12, http://www.ottoenergy.com/irm/content/annualreport/AR2012.pdf
Advertisements

3 thoughts on “Making Sense on PXP vs TA Petroleum

  1. Effective interest of PXP in SC 72 is actually 36%. If you check out PXP’s annual report, you will see that PXP directly owns about 38-39% of FEP and another 24-25% indirectly through 51%-owned FEC Resources. I forget the actual figures but please check it out yourself. So it’s 70% x (39% + [51% x 24%]) = 36% more or less.

    Furthermore, SC 55 has already been farmed out to an oil major (BHP at that) while SC 72 is unlikely to get farmed out until at least the UNCLOS arbitration is finished in about 2-3 years’ time. Even if the farm out occurs sooner, the point is that PXP’s effective stake in SC 72 will eventually be much smaller than the current 36%.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s