Mitra Energy set to pursue Sulu Sea exploration

KUALA LUMPUR: Mitra Energy Phiilppines Ltd, a unit of
Malaysia-based Mitra Energy Ltd, has gained full ownership of the
Service Contract 56 (SC 56) licence, allowing it to pursue the Sulu Sea
exploration project, especially in the Sandakan Basin off the
Philippines.

"Mitra Energy had increased its equity to 100 per
cent in SC 56, Sandakan Basin offshore Philippines, effective October
31, 2011," the company said on its website.

Prior to the
announcement, field operator ExxonMobil Exploration and Production
Philippines B.V. (EMEPP), a unit of oil giant ExxonMobil Corp, had held
a 50 per cent equity interest in the project, while Mitra Energy and
Australia's BHP Billiton each had a 25 per cent stake in the service
contract.

News reports on Monday said Mitra Energy Philippines
would take over the 50 per cent stake of EMEPP in SC 56 in Northwest
Palawan, following the latter's decision to pull out from the project
and resign as SC 56's operator.





When contacted by Business Times, a Philippine government spokesman
confirmed that Mitra Energy would assume the operatorship for SC 56 and
might take in a partner after assuming the shares of EMEPP.


"Yes, Mitra will assume the operatorship for SC 56. Mitra will also take
in a new partner once it becomes the operator. But I do not how much
Mitra will divest to its potential partner or partners," the spokesman
said.

Only two weeks ago, EMEPP had announced that it would
withdraw from the Sulu Sea exploration project and resign as operator of
SC 56, following its discovery that gas from wells it had drilled in
the contract area were of "non-commercial quantities".

"There is still no production at SC 56," the spokesman said.

But according to Mitra Energy, two significant gas discoveries had
been found in drilling the Dabakan-1 and Palanda-1A wells, and a further
minor discovery at Babendil-1.

"Mitra believes that SC 56
presents an exciting opportunity to commercialise significant
hydrocarbon resource volumes and support the future energy requirements
of the Philippines," the company said.

Mitra Energy is a privately owned independent oil and gas exploration company focusing on the Asia-Pacific region.

Since
the company's formation in mid-2005, its initial focus on Indonesia,
the Philippines, Vietnam and Thailand has resulted in the acquisition of
a number of high quality exploration assets.

The company
recognises that local representation is essential in building and
maintaining partnerships in the region and, to this end, Mitra Energy
has established offices in Jakarta and Ho Chi Minh City, with
representations in Manila, Singapore and Bangkok.

The regional
office in Kuala Lumpur identifies new venture opportunities and provides
technical and managerial support to the assets.