2nd Mar 2015 15:36
LONDON (Alliance News) - Forum Energy PLC Monday said all exploration work on the company's Service Contract 72 has been immediately suspended due to an ongoing dispute between the Republic of Philippines and the People's Republic of China.
The oil and gas exploration and production company said the Philippine Department of Energy has suspended operations on Service Contract 72 because the contract area falls within territory that is currently in the West Philippine Sea, which is subject to an United Nations arbitration process between the Philippines and China.
Service Contract 72 is an offshore licence which contains the Sampaguita gas field as well as several oil and gas leads, with Forum holding a 70% interest in the license.
"All exploration work at Service Contract 72 is immediately suspended until the Department of Energy notifies the company that it may commence drilling," said Forum.
Forum shares fell by 10.4% to 21.50 pence per share on Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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