The Chairman

February 26, 1998 PSE CIRCULAR FOR BROKERS NO. 222-98 February 25, 1998 The Chairman Securities and Exchange Commission EDSA, Greenhills, San Juan Metro Manila Dear Sir : Please be informed that today, the Department of Energy and Trans-Asia Oil together with five other Philippine companies, entered into a Geophysical Survey and Exploration Contract (GSEC) over an area located offshore West Palawan. LLjur Attached herewith is a detailed statement regarding this new geophysical contract. Trans-Asia's share of committed expenditures is US$137,500. We trust the foregoing and the statement adequately discusses this award of a new GSEC. Yours truly, (SGD.) BENJAMIN S. AUSTRIA SVP for Exploration NEW OFFSHORE PALAWAN GEOPHYSICAL SURVEY CONTRACT AWARDED TO ALL-FILIPINO CONSORTIUM The Department of Energy awarded on 25th February 1998 a new Geophysical Survey and Exploration Contract (GSEC) to a consortium of Filipino companies composed of Trans-Asia Oil and Energy Development Corporation (55% participating interest, Operator), Phoenix Energy Corporation (15%), Basic Consolidated, Inc. (10%), Seafront Resources Corporation (10%), Oriental Petroleum and Minerals Corporation (5%), and Petrofields Corporation (5%). GSEC No. 94 covers a 1.485 million hectare block in the Philippines' sector of the South China Sea off Palawan (see attached map for location). The consortium has committed to evaluate at least 1,300 kilometers of new and vintage seismic data as well as 2500 kilometers each of marine gravity and magnetic records during the fifteen-month term of the GSEC. The expenditure obligation amounts to US$250,000. GSEC No. 94 grants the consortium the option to conduct a new seismic program amounting to US$250,000 following completion of the committed work program. The contract also allows the drilling of up to two (2) option wells in the area. The area of interest covers part of the GSEC 80 block which was held by the same consortium until mid-1997. The new program is designed to pursue leads which resulted from technical studies conducted under GSEC 80 based on some 780 km of seismic, 1200 km of gravity and 1200 km of magnetic data.