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In 2008, Blade
Petroleum submitted to the DOE their preliminary Plan of Development (POD) for
the Cadlao Field. With the POD, Blade Petroleum committed to re-activate the
Cadlao Field, which last produced in 1991, via two (2) new production wells at a
target total project cost of USD 100 MM.
During the
early part of 2009, Blade Petroleum and the DOE had a series of negotiations for
the finalization and acceptance of the POD. The POD was finally approved by the
DOE on June 17, 2009.
While these
developments were taking place, Philodrill and Blade Petroleum also negotiated
for the latter’s purchase of Philodrill’s
revenue interest share in the Cadlao Field. Up to the end of 2009, negotiations
did not materialize as both parties failed to agree on
the acceptable terms and conditions of the
purchase.
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