2 August 2013BONITA FARMIN NOT APPROVED BY PHILIPPINES DOEPeak...

2 August 2013
BONITA FARMIN NOT APPROVED BY PHILIPPINES DOE
Peak Oil & Gas Limited (“Peak” or “Company”) (ASX:PKO) has received advice from Philodrill Corporation, the operator of SC6B Bonita (“Bonita Block”), that the Philippines’ Department of Energy (“DOE”) has not approved the farmin to the Bonita Block contemplated by Peak, Blade Petroleum Limited and VenturOil Philippines Inc (“Farminees”). Under the terms of the farmin agreement, Peak would have been eligible to earn a 32.2% interest in the Bonita Block.

This farmin has been the subject of DOE consideration for 12 months during which time the Farminees were required to demonstrate their respective technical and financial capacity. Informal advice from the DOE indicates that both Peak and VenturOil satisfied the DOE in this regard but that approval could only be granted on the basis of all Farminees meeting the DOE criteria.

Whilst disappointing, Peak is confident a new agreement with the Bonita Block JV can be negotiated once the Cadlao development commences. The Cadlao East prospect, which has a Mean Prospective Resource of 2.7 mmbbl, straddles the boundary between SC6 Cadlao (“Cadlao Block”) and the Bonita Block and would be commercially optimised as a tie-back development through the Cadlao facilities.
Progress on the Cadlao project continues in line with the advice provided in the Company’s quarterly activities report released on 31 July 2013.


http://www.infomine.com/index/pr/PB340539.PDF

So Blade Petroleum failed to demonstrate technical and/or financial capacity for DOE to approve. Blade have 80% equity and are the operator of SC6C.