Prime Oil offers to buy Razon firm's 30% stake in West Philippine Sea gas project

Prime Oil & Gas, Inc. has offered to acquire the 30% participating interest held by Monte Oro Resources & Energy, Inc., a subsidiary of Apex Mining Co., Inc., in Service Contract 72 (SC72) covering the Sampaguita Gas Field in the West Philippine Sea. The proposed intra-group transaction, subject to

Prime Oil & Gas, Inc. has offered to acquire the 30% participating interest held by Monte Oro Resources & Energy, Inc. (MOREI) in Service Contract 72 (SC72), a petroleum exploration project covering the Sampaguita Gas Field in Recto Bank (Reed Bank) in the West Philippine Sea. Apex Mining Co., Inc., the listed mining company that owns MOREI, disclosed the offer in a regulatory filing on Tuesday.

The proposed transaction would transfer MOREI's existing interest in SC72 to Prime Oil & Gas, another company under Prime Strategic Holdings, Inc., the holding company of businessman Enrique K. Razon, Jr. Both Prime Oil & Gas, a petroleum exploration and production company, and Apex Mining, which focuses on gold and other mineral mining operations, are part of Mr. Razon's group.

The offer remains subject to several conditions, including a valuation exercise to determine the value of the asset and the consideration, due diligence results, the execution of a mutually acceptable definitive agreement, and approval from the Department of Energy (DoE). Apex Mining said MOREI has engaged an accredited third-party professional valuer to assist in the valuation process.

Apex Mining did not disclose the proposed acquisition price or a timetable for completing the transaction, nor did it specify the reason for the proposed acquisition.

SC72 covers approximately 8,800 square kilometres in the West Philippine Sea for petroleum exploration, development and exploitation. Forum (GSEC 101) Ltd. holds the remaining 70% participating interest and serves as the operator of the service contract.

Exploration activities under SC72 have been suspended since April 2022 following instructions from the DoE amid geopolitical tensions with China in the West Philippine Sea. Apex Mining said the declaration of force majeure remains in effect.

Shares in Apex Mining fell by 0.12%, or two centavos, to close at P16.92 apiece on Tuesday.