Listed Basic Energy Corp. on Thursday said its subsidiary Southwest Resources Inc. relinquished its rights over service contract (SC) 41 in the Sulu Sea.

Basic Energy did not disclose why Southwest decided to relinquish its right over the exploration block.

Southwest holds 0.608-percent participation interest in SC 41. Basic Energy owns 82.465-percent of the outstanding capital stock of Southwest.

Southwest’s move followed the decision of Australian firm Tap Oil Ltd. to relinquish its rights over SC 41 due to its failure to secure a farm-out agreement.

Tap Oil’s service contract would have included a work program commitment to drill an exploratory well by May next year, but the company later said that doing so is not appropriate at this time.

Other companies with exposures in the SC 41 consortium are Salamander Energy and local partners which include Southwest Resources Inc., Philodrill Corp., Philex Mining Corp., Oriental Petroleum and Minerals Corp., Universal Robina Corp., South China Resources Inc., and Anglo Philippine Holding Corp. —JE, GMANews.TV

Source: http://www.gmanetwork.com/news/story/199500/economy/basic-energy-unit-southwest-resources-dropped-out-of-sc-41