FRONTIER Oil Corp. may revisit plans to list at the Philippine Stock Exchange (PSE).
However, the company will pursue this after it has successfully undertaken various exploration activities.
“The intention at this stage is to list post-production. We changed the strategy. We want to be a producing entity first so that we already have a revenue stream by that time,” Frontier Oil Chief Executive Officer Kristoffer Fellowes said.
In June the company announced it was shelving its initial public offering (IPO) plans, citing poor market conditions.
The company had been planning an IPO since last year but decided to wait for more favorable-market conditions. The company also said then that it wants to explore an alternative listing possibility on another global-stock exchange.
“As such, Frontier wishes to withdraw its plans for a local offering,” the company earlier said.
Frontier had planned to offer 883.626-million common shares at an offer price of up to P2.50 per share. It had wanted to raise P2.2 billion from the IPO for its drilling campaign for Service Contract 52 in Cagayan Valley and Service Contract 50 in Northwest Palawan.
SC 52 is estimated to contain contingent gas resource of as much as 231.91 billion cubic feet. The Calauit field in SC 50, meanwhile, is estimated to contain 10 million to 13.2 million barrels of oil. When asked when it can pursue to list in either the local or international bourse Fellowes said, “Our intention is to do it in the near-term.”
Recently, Frontier Oil said it was leasing a drilling rig from Malaysia’s UMW Offshore Drilling Sdn. Bhd. for $20 million. The UMW Naga 7 will arrive sometime in the first quarter of 2015 and will be used to initially drill two wells located in the proven Calauit oilfields.