“NorAsian, in partnership with its Filipino partner in its other licences, TransAsia Oil & Energy, have been selected from a competitive bid process, for this exploration area, the term of which will be for a seven-year period,” Otto said this morning.

The permit, currently designated as Area 8, will be assigned over the coming weeks as the formal terms, work commitments, and schedules are negotiated and finalised.

“The area is considered highly prospective with over 20 already identified structures that could potentially contain hydrocarbons,” Otto said.

“The minimum work program commitment consists of principally 2D and 3D seismic with one firm well commitment in year seven, but drilling could commence as early as 2010.”

Area 8 lies between the Islands of Cebu, Bohol and Leyte and covers 7440 square kilometers of the Visayan Basin.

It is already covered by about 3000km of 2D seismic and an active petroleum system has been inferred through abundant onshore oil seeps and seismic-supported direct hydrocarbon indicators in prospects in the area, according to Otto.

“The block lies between two sub-blocks of SC51, where NorAsian already has an 80 percent working interest,” Otto said.

NorAsian recently acquired 145sq.km of 3D seismic data over two prospects in SC51 in the lead-up to drilling in 2008 or early 2009.

Area 8 offers significant follow-up potential in additional structures if NorAsian has success in the initial drilling in SC 51.”

Otto said the offshore marine area in the block has great conservation value. But the company was confident that by undertaking comprehensive environmental baseline surveys and environmental risk assessments, as well as comprehensive community consultation programs, it could design an exploration program to appraise the area with minimal impact.

If the block is awarded, participants in Area 8 will be Otto (via NorAsian Energy Philippines) operator and 70%, and Trans-Asia Oil and Energy Development 30%.