Forum Energy Corporation's subsidiary, Forum Exploration, has been formally awarded two Coal Operating Contracts on the island of Cebu, Philippines by the Philippine Department of Energy.
The two contracts, located at Balamban-Naga (Central Cebu) and Dalaguete (Southern Cebu) have estimated proven reserves of around 6 million tons of high quality coal (12,000BTU). The production forecast for the two contracts is for up to 9,000 tons per month for both licenses.
The Coal Operating Contracts (COC) in Central Cebu is made up of four blocks covering an area of over 4,000 hectares, which is known for the widespread coal bearing Luca Formation of early-middle Miocene age. The Southern Cebu COC also involves four coal blocks covering an area of almost 3,000 hectares, which is known for its coal bearing Calagasan formation of middle Miocene age.
Production from the two licenses is expected to commence this year.
The award comes as part of a concerted effort by the Philippines government to improve its exploitation of its natural resources through greater foreign investment. The Philippines is estimated to have 330 million metric tons of coal reserves. Last year, coal production hit an all time high of 2.7 million metric tons, 33% higher than the 2003 production of 2.03 million metric tons.