Reuters: Philex Finds Gas in South China Sea, May Fuel Tension

A natural gas discovery in a disputed area in the South China Sea contains more reserves than initially thought, a Philippine exploration firm said on Tuesday, with the new findings likely to further intensify territorial tensions between Beijing and Manila.

The Philippines' Philex Petroleum Corp said in a disclosure to the stock exchange that its Forum Energy Plc has a report that "is expected to show an improvement in the resources previously known" in the Sampaguita gas discovery in the Reed Bank, which the government calls Recto Bank.

Forum Energy had previously said that based on a 2006 study, the Sampaguita field had a potential of up to 20 trillion cubic feet of natural gas, or more than five times initial estimates. MORE