en.Wedoany.com Reported - Tetragon Energy Ltd (ASX:TET) commenced trading on the ASX after completing a A$4 million initial public offering (IPO), immediately advancing its oil and gas asset portfolio in the Philippines.

The Perth-based energy company issued shares at A$0.20 each, giving it a market capitalisation of A$8 million at the issue price. The IPO comprised 20 million fully paid ordinary shares, with 19,700,408 shares allocated pro-rata to shareholders of Triangle Energy (Triangle Energy (Global) Ltd, ASX:TEG), bringing the total issued shares to 39,700,408.

Tetragon was spun off from Triangle Energy. Under the arrangement, Triangle shareholders received one Tetragon share for every 113 Triangle shares held.

The company's immediate priority is to implement the first phase of an accelerated exploration program within its Philippine permit blocks. This phase is led by the Sulu Sea project, which covers two adjacent offshore permit blocks, SC-80 and SC-81. Tetragon holds a 37.5% interest in and operates these two permit blocks.

These offshore permit blocks contain two undeveloped gas discoveries, with total 2C contingent resources estimated at 470 billion cubic feet of gas plus 5 million barrels of condensate under the mid-case scenario.

Tetragon believes there is room for growth in this resource base. The company noted that geological structures identified in four existing 3D seismic surveys show similarities to major discoveries in the circum-Borneo region.

On the technical front, the primary task is to integrate and reprocess data from four 3D seismic surveys covering a total area of over 4,000 square kilometres across the two offshore permit blocks. These datasets were acquired between 2005 and 2013, with an original acquisition cost of approximately A$20 million, and will now be reprocessed using modern supercomputing technology.

Tetragon stated that this work aims to provide deeper technical insights into exploration upside potential and support discussions with potential partners.

Triangle Managing Director Conrad Todd said Tetragon's successful listing enables the company to fully capitalise on exploration opportunities in these projects. He believes these Philippine assets have significant upside potential, and Tetragon, as operator of the three permit blocks, is expected to unlock this potential following further technical work. The company's next steps will prioritise the 3D seismic reprocessing project and review resources in the offshore permit blocks, while also actively seeking additional opportunities in Southeast Asia.

Tetragon also holds a 100% interest in the Cagayan Basin project. This project covers onshore permit block SC-82 on Luzon Island, approximately 250 kilometres north of Manila. The permit block contains the Nassiping-2 gas discovery, with 2C contingent resources of 130 billion cubic feet of gas under the mid-case scenario. Tetragon believes Nassiping has the potential to support gas operations amid rising domestic energy demand.

Tetragon Energy currently holds interests in three Philippine oil and gas permit blocks. In addition to operating and holding a 37.5% interest in offshore permit blocks SC-80 and SC-81, it also operates and holds a 100% interest in onshore permit block SC-82. The company is also evaluating acquisition opportunities to expand its asset portfolio.