Sterling Energy has been awarded an exploration license for the Reed Bank area offshore Palawan. The Reed Bank basin, covers approximately 71,000 square kilometers northwest of Palawan and is estimated to contain up to 5.0 trillion cubic feet of gas. If sufficient gas is found, Sterling plans to build a $250 million offshore methanol plant, which would produce 5,000 tons of methanol. The company plans to export the methanol to Asian markets.
Sterling will make a minimum investment of $200,000 to explore the field. Exploration rights were given under a 60/40 profit-sharing agreement.