Tetragon Energy has started trading on the ASX after completing a $4 million IPO, with the newly listed company moving immediately to advance its Philippines oil and gas portfolio.

The Perth-based energy company raised the funds at 20 cents per share, giving it a market capitalisation of $8 million at the listing price. The IPO comprised 20 million new fully paid ordinary shares, alongside an in-specie distribution of 19,700,408 shares to Triangle Energy shareholders, resulting in 39,700,408 shares on issue. 

Tetragon was spun out of Triangle Energy, with Triangle shareholders receiving one Tetragon share for every 113 Triangle shares held. 

Exploration funded by IPO proceeds

The company’s immediate focus is the first phase of an accelerated exploration program across its Philippines acreage, led by the Sulu Sea Project, which comprises two adjacent offshore permits, SC-80 and SC-81. Tetragon holds a 37.5% interest in the permits and is operator. 

The offshore permits contain two undeveloped gas discoveries with gross mid-case 2C contingent resources of 470 billion cubic feet of gas, plus 5 million barrels of condensate. 

Tetragon believes there is potential to grow the resource base, pointing to structures mapped on four existing 3D seismic surveys that it says are similar to major discoveries in the circum-Borneo region. 

Seismic reprocessing to define upside

The first technical priority is to merge and reprocess four 3D seismic surveys covering more than 4,000 square kilometres across the two offshore permits. The datasets were acquired between 2005 and 2013 at an estimated cost of about $20 million and will now be reprocessed using modern supercomputing and techniques. 

Tetragon said the work was designed to provide greater technical insight into exploration upside and support discussions with potential farm-in partners. 

Triangle managing director Conrad Todd said:
“The successful listing of Tetragon allows us to fully exploit the outstanding exploration opportunities at these projects. We consider these Philippines assets to have significant upside which Tetragon, as operator of all three permits, expects to unlock after further technical work.

“Our priority is to award the 3D seismic reprocessing project and to review the resources in the offshore permits. We are also actively searching for further opportunities in the southeast Asian region”. 

Cagayan Basin adds onshore gas exposure

Tetragon also owns 100% of the Cagayan Basin Project, comprising onshore permit SC-82 on the island of Luzon, about 250 kilometres north of Manila. 

The permit contains the Nassiping-2 gas discovery, with gross 2C contingent resources of 13 billion cubic feet of gas. Tetragon believes Nassiping has potential to support a domestic gas operation amid rising local energy demand. 

Proactive original article   l   KeyFacts Energy: Tetragon Philippines country profile