PRIME OIL & GAS, Inc. has offered to acquire the 30% interest held by a subsidiary of listed mining company Apex Mining Co., Inc. in a petroleum exploration project in the West Philippine Sea, in a proposed transaction between companies under businessman Enrique K. Razon, Jr.’s group.
The proposed acquisition involves Service Contract 72 (SC72), which includes the Sampaguita Gas Field in Recto Bank, also known as Reed Bank, where exploration activities have been suspended since 2022.
Apex Mining said in a regulatory filing on Tuesday that its wholly owned subsidiary, Monte Oro Resources & Energy, Inc. (MOREI), received the offer from Prime Oil & Gas for its 30% participating interest in the service contract.
Prime Oil & Gas, a petroleum exploration and production company, and Apex Mining, which is engaged in gold and other mineral mining operations, are both under Prime Strategic Holdings, Inc., the holding company of Mr. Razon.
If completed, the transaction would transfer MOREI’s existing interest in SC72 to Prime Oil & Gas, another company under the same parent group.
The proposed acquisition remains subject to valuation, due diligence, the execution of a definitive agreement, and approval from the Department of Energy (DoE).
“This offer is subject to: (a) a valuation exercise to determine the value of the asset and the consideration of the proposed transaction; (b) due diligence results; (c) mutually acceptable definitive agreement,” Apex Mining said in its disclosure.
The company said MOREI has engaged an accredited third-party professional valuer to assist in determining the value of its participating interest and the consideration for the proposed transaction.
Apex Mining did not disclose the proposed acquisition price or a timetable for completing the transaction.
The company also did not specify the reason for the proposed acquisition.
SC72 covers approximately 8,800 square kilometers in the West Philippine Sea for petroleum exploration, development, and exploitation, including the Sampaguita Gas Field.
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. — Alexandria Grace C. Magno