Forum Energy Plc, a listed company in the UK, will start coal drilling in Cebu within the first half of the year, according to a disclosure.

Forum Energy said coal exploration drilling operations in southern Cebu are covered by an operating contract with the Energy Department.

Forum Energy committed to drill 12 holes at a total combined depth of 2,000 meters in the first half of the year using up to three drill rigs. Its coal contract area covers over 2,700 hectares.

?The objective will be to block out coal reserves that will be subject to a mining plan relative to the conversion [of the contract]... to a development and production [operating contract],? Forum Energy said.

It said drilling operations would be supervised by Independent Resource Estimations, a South African-based consulting company that provided services to Forum Energy in past works.

?... Forum has now decided to concentrate on developing [coal operating contract] 131, which is located in an area with better quality coal deposits as compared to other coal-bearing areas in the Philippines,? said Forum Energy chief executive Walter Brown.

Brown represents the interest of Philex Petroleum Corp. and FEC Resources Inc., units of Philex Mining Corp., in Forum Energy. Philex Petroleum and FEC Resources own 18.48 million shares in Forum Energy, representing 61.44 of the capital of Forum Energy.

Forum Energy last year completed its divestment of another coal-operating contract in Balamban-Naga to First Asian Resources and Mining Corp. for $3.5 million.

The contract in central Cebu covers 4,000 hectares. Both coal contracts are estimated to contain combined proven and probable coal reserves of 4.9 million tons.

Forum Energy also operates an oil exploration contract in the Visayan Basin. The area covers the northern area of Cebu island and the adjacent offshore areas in the central Ta?on Strait and Visayan Sea.

Forum Energy, meanwhile, is waiting for the Energy Department to convert its geophysical survey and exploration contract on the Reed Bank area in South China Sea west of Palawan island. The area is located southwest of the Shell-operated Malampaya gas field. Alena Mae S. Flores