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Oil firm Frontier defers IPO to end of 2013

July 4, 2013 9:40pm
Upstream oil firm Frontier Oil Corporation has deferred its initial public offering (IPO) to the end of 2013 from mid-year, the company said Thursday.

In an emailed statement, Frontier's CEO Kristoffer Fellowes confirmed the company's intentions to launch its IPO this year.

“The company has already sparked the interest of a number of known business individuals and is planning to further strengthen the Company's board ahead of a what promises to be successful float on the exchange prior to year end," he said.

“Frontier is now moving rapidly towards commercially exploiting both Service Contract 52 and the second of its major projects, the Calauit oilfield, which lies in Service Contract 50 offshore north-western Palawan and is also operated by Frontier,” he added.

On Wednesday, Trans-Asia Oil and Energy Development Corporation confirmed the extension of their 10-percent option over SC 52, a highly prospective onshore gas project in the Cagayan Valley, Northern Luzon.

Under the terms of the extension, Trans-Asia will pay the project operator Frontier an option fee that entitles them to a 10-percent participating interest post-drilling. The option fee will be offset against the cost of exploration, if the option is exercised.

The company said the momentum and excitement surrounding Frontier appears to be gathering pace as details come to light of the company’s 5-percent back-in arrangement over SC 55 lying offshore Palawan.

"This highly regarded block contains several structures of substantial size and economic discovery potential. BHP Billiton, the Australian, multinational resources giant, has committed to a drilling program on the concession," it said.

Earlier reports said the company will use IPO proceeds for the development of SC 52 ad SC 50.

SC 52 is a 96,000-hectare onshore oil and gas block located in the Cagayan Valley while SC 50 is the offshore gas field in Northwestern Palawan. Danessa O. Rivera/BM, GMA News
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