Red Emperor Resources NL of Australia may acquire part of the stake of Otto Energy Ltd. in gas-rich service contract 55 in southwest Palawan.
Red Emperor said in a quarterly report was advised by Otto Energy of its intention to exit from its joint venture in SC 55 “as part of its strategy to focus on its North American assets.”
“As a result, Red Emperor would have the option to maintain 15 percent participating interest in SC 55 or be assigned a percentage of Otto Energy’s interest on a pro-rata basis,” the company said.
Red Emperor said its interest could be increased by up to 22.5 percent to 37.5 percent.
Otto Energy as operator of the block owns a 78.18-percent stake in SC 55, while Red Emperor holds a 15 percent. Palawan 55 Exploration and Production Corp. owns 6.82 percent.
“Red Emperor is considering its options and will advise the market accordingly,” the company said.
Otto Energy earlier bared plans for a “structured exit” from its Philippine assets despite seeking a two-year moratorium with the Energy Department.