RP firm acquires 25-percent stake in US oil and gas project

Publicly listed Philippine firm A Brown Company, Inc. acquired a 25% stake in an oil and gas exploration project in the United States that is expected to contain about 5 billion cubic feet of gas. In a disclosure to the Philippine Stock Exchange, the company said it acquired a 25-percent stake in the BG-1 Prospect in Golland County in Texas, operated by US firm Esenjay Oil and Gas Ltd. "The BG-1 Prospect is an untested 530-acre structural fault trap located in an area that is expected to contain commercial oil and gas deposits due to the presence of several producing fields nearby," the company said. The prospect, the company said, is supported by 3D seismic data acquired only recently. An exploratory well is being planned for drilling this month to test the prospect, with the primary target being the Upper Wilcox sand package that has produced billions in cubic feet of gas in the surrounding area. The well will be drilled to a total depth of 9,700 ft at a cost of up to $1.27 million, of which about $500,000 would be shouldered by the company. A Brown is primarily engaged in real estate development, oil palm nursery and seedlings distribution, palm oil mining, operation of apartelles, and real estate brokerage. -- GMANews.TV