Forum Energy Share Discussion Threads

[earnestwipplethwaiteiii] 06/11/2013 03:17

Some sensible discussion of the SCS issue:
hxxp://www.atimes.com/atimes/Southeast_Asia/SEA-01-051113.html

[jonno1] 03/11/2013 17:09

hxxp://www.nytimes.com/newsgraphics/2013/10/27/south-china-sea/?nl=todaysheadlines&emc=edit_th_20131027

[spaceparallax] 29/10/2013 08:59

Nevertheless a step in the right direction.

[jonno1] 28/10/2013 11:30

all hypothetical as usual

[jonno1] 28/10/2013 11:24

MANILA, Philippines - Businessman Manuel V. Pangilinan expressed hopes that fresh talks between Philex Mining Corp.'s Forum Energy plc and China's state-owned oil producer China National Offshore Oil Co. Ltd. (CNOOC) would finally pave the way for exploratory works in the disputed Recto Bank in the West Philippine Sea.

"That's what we're aiming for. We hope to do that to reach a commercial basis for further exploratory and drilling work on the concession but further subject to approval of their government and our government," Pangilinan told reporters on Friday.

However, Pangilinan declined to provide details on how the talks were going, citing confidential agreements.

He said Forum is waiting for the conclusion of negotiations with CNOOC prior to engaging talks with other interested parties.

From a business perspective, he said, Forum Energy is keen to start drilling on the disputed territory "as soon as possible" but security issues prevent them from doing so.

Any agreements would also have to conform to sovereign laws, he said.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1


"We are a Philippine contractor so we are bound by Philippines law so we cannot do that if we do not conform to Philippine laws.

We have to recognize Philippine sovereignty," Pangilinan said.

Forum Energy has a 70-percent stake in the area, which is covered by Service Contract 72 while Monte Oro Resources and Energy Inc. holds the remaining 30 percent.

The Energy department has granted Forum Energy an extension to August 2015 to complete the second sub-phase obligations of drilling wells on SC 72. The area is estimated to contain prospective resources of as much as 16.6 trillion cubic feet of gas and 416 million barrels of oil.

The department has extended Forum's work program by two years to August 2015 from the original deadline of August 2013 to allow it to complete its obligations under the service contract.

Forum sought an extension in the government-mandated work program because of delays in their drilling activities, dragged largely by the geopolitical issues between the Philippines and China

Philex Mining owns 64.45 percent of Forum Energy through its interests in FEC Resources, Inc and Philex Petroleum Corp. The remaining interest is held by other shareholders in the UK.

hxxp://www.philstar.com/business/2013/10/28/1250137/mvp-sees-start-exploration-recto-bank

[spaceparallax] 24/10/2013 13:43

Thanks for that article Union. It expands nicely on the recent news about talks.

No one is suggesting SC72 action in the near future because there's lot to do before anything flows. With talks that action becomes a real possibility cf deadlock and zero progress.

Were it not for the political dispute, this share has the potential to be a 20 or 30 bagger from here. Whilst that remains a long way off, those with patience and a cool head are more likely than not to be rewarded. As I've said before, it's in the interest of neither China nor the Phillipines to have this colossal resource sitting untapped when their economic development is crying out for energy. If CNOOC make money, then the Chinese Govt makes money through taxation. Hopefully this will persuade them to accommodate rather than escalate into a full-blown international crisis that would help neither nation and yet cost both dearly because this isn't a marginal dispute - international boundary law totally favours the Phillipines. Currently China is blossoming through the continual improvement of relationships with other major powers, such progress would be badly dented should they attempt to force a military solution here; no doubt the Chinese govt are savvy enough to recognise this.

[sirshagalot] 24/10/2013 10:41

the 200 mile maritime law cannot be disputed.
no matter how big you think you are!.
the world is watching china and china knows this.

[earnestwipplethwaiteiii] 24/10/2013 10:22

Galoc will support a certain level of sp, particularly with the upgrade in resource. I've no idea what that might be, but I agree, China's strategy is to divide and rule ASEAN, and at the moment they have the whip handle. The Philippines and Vietnam are particularly out of favour with the apparatchiks in Beijing. Best not to chase the dragon.

[sirshagalot] 24/10/2013 10:10

if china accepts the peace offerings the share price would be worth in region of £5

[ih_137280] 24/10/2013 09:41

this is just a rehash of the same news for last year...China will NOT allow CNOOC to drill until the whole area dispute is settled , which doesn't seem like anytime soon, I would be very careful chasing this too far

[unionhall] 24/10/2013 09:37

PH open to explore oil jointly with China
By Joyce Pangco Panares | Posted 16 hours ago | 487 views


1
President Benigno Aquino III said on Wednesday that the government is open to a joint exploration between Forum Energy and state-owned China National Offshore Oil Corp. in Recto Bank (Reed Bank) for as long as the contract subscribes to Philippine laws.

"It (exploration) must conform to our laws. We maintain that the area that Forum Energy is exploring is clearly within our 200 nautical mile exclusive economic zone and therefore, any exploitation of the same has to be in conformity with our laws," Aquino said.

"As to the actual details of the contracts between them, then that will be a matter between the two entities. But at the end of the day, it has to subscribe to our own laws," the President said.

Forum Energy is majority-owned by the Philex Mining Corp. of businessman Manuel Pangilinan.

Exploration activities are estimated to cost anywhere from $48.5 million to $88.5 million.

Aquino also explained that "part of subscribing to the laws has to deal with the royalties" that are due to the Philippine government.

Recto Bank was never a disputed territory between Manila and Beijing until China came out with its nine-dash line policy claiming the entire West Philippine Sea.

Based on a recent study by the United States Energy Information Administration, the bank could hold up to 5.4 billion barrels of oil and 55.1 trillion cubic feet of natural gas.

The EIA report said the area may also contain significant deposits of undiscovered hydrocarbons.

Meanwhile, the President said there was no need to remove the old concrete blocks in Panatag Shoal, otherwise known as Scarborough Shoal, which is also being claimed by China.

"From our findings, they are very, very old concrete blocks. Some of them have barnacles attached to them. They are not a new phenomenon," Aquino said.

"So they don't seem to give us any reason to have an increase in anxiety. They posed no threat to safe navigation. They don't present an immediate danger to any of our vessels or even those that would transit in the area around the Scarborough Shoal," he said.

Aquino's statement contradicted an earlier report by the Department of National Defense that at least 75 concrete blocks have been laid out by Chinese vessels in the disputed area off the waters of Zambales.

[fireplace22] 24/10/2013 09:28

But with PXP at almost its low for the year and with little TO in it's shares it doesn't indicate that action is due anytime soon on SC72.

[spaceparallax] 24/10/2013 09:21

Possibly but not necessarily as the history of recent years has demonstrated only a tenuous link between these two sps; which has at times amazed holders here.

[fireplace22] 24/10/2013 09:07

But wouldn't you expect a simultaneous increase in PXP if it were SC72 related?

[spaceparallax] 24/10/2013 09:03

Looks like a positive response from the mkt to the latest talks - it makes sense as a win:win via Jaw:Jaw has got to be better no extraction and War:War. Simples!

[earnestwipplethwaiteiii] 24/10/2013 08:38

Well sorry, but I just don't see it: to all intents and purposes CNOOC does what it's told by the CPC and I can't see them suddenly playing softball with the Philippines having been playing hardball for several years with the whole of ASEAN.

[fireplace22] 24/10/2013 08:30

If there are positive vibes about a deal on SC72 why has the PXP share price not responded? I'd settle for a short term take out at 200p.

[ducatiman] 24/10/2013 08:23

Seriously though, if they strike a deal with cnooc my £4 target will become a reality very quickly! GLA.

[ducatiman] 24/10/2013 08:19

oops up 18.5%, they won`t like that, 3rd know of no reason, in short order, coming up. LOL.

[moreforus] 24/10/2013 08:08

why is this up 18%>>>??

[spaceparallax] 23/10/2013 11:49

The rewards and the risks. Importantly CNOOC will use their political clout to persuade the Chinese Govt that a healthy portion of something is better than expensive international conflict that only adds to the debit account.

Good to see the share price responding.

[moreforus] 23/10/2013 11:36

well if FEP and CNOOC are talking it will be about commercial and technical matters....a jv is a much better way of splitting the rewards....

[spaceparallax] 23/10/2013 11:34

Cheers MFU - sounds as if reason is beginning to prevail