Oil search firm listed tomorrow, the first this year

Oil exploration firm Petroenergy Resources Corp. will start off the entry of new companies at the Philippine Stock Exchange (PSE) this year as it has set the listing of its shares by way of introduction tomorrow, Aug. 11.

In a memorandum to brokers yesterday, the PSE said Petroenergy, a subsidiary of the Yuchengco-controlled listed company Petrofields Corp., will list 84.25 million common shares by way of introduction, or the process of listing shares without undergoing an initial public offering (IPO).

The shares, which carry a par value of P1 each, will be listed at the second board of the PSE.

The listing of Petroenergy will pave the way for the scheduled public offering of other companies this year, including that of International Exchange Bank and GMA Network Inc.

As an oil exploration company, Petroenergy has interests in several ongoing projects: a five-percent stake in Service Contract 6A (Octon-Barselia); 1.19 percent in SC 41 (South Sulu); 2.31 percent in Ragay Gulf’s geophysical survey and exploration contract (GSEC) 76; 2.94 percent in GSEC 91 off the Southwest Palawan area and five percent in the West Palawan-Reedbank area (GSEC 94).

Petroenergy also has an interest in Vaalco Energy Inc.’s oilfield development project in offshore Gabon. Vaalco is a small, publicly-traded exploration and development energy company based in Houston, Texas. Its wholly-owned subsidiary Vaalco Gabon (Etame) owns 28.1 percent of the production license for the Etame marine permit area and will act as operator of the project.

The total project cost is estimated at $98 million, including $33 million of prior capital investment, with Vaalco contributing $28 million of the total cost.

In May 2003, Petroenergy restructured its capital through an 8:1 reverse stock split, resulting in the reduction of its outstanding capital stock from P674.03 million to P84.25 million and the creation of additional paid-in capital of P589.77 million.

To eliminate the deficit, Petroenergy applied its additional paid-in capital against the Dec. 31, 2002 deficit amounting to P22.75 million.

Since its reorganization, Petroenergy has been categorized as a public company with a total of 3,138 stockholders.

Its officers and directors include former Energy Secretary Delfin Lazaro as chairman, former Trade Secretary Rizalino, Navarro, Cesar Buenaventura, Helen Dee, Milagros Reyes, Basil Ong, and Yvonne Yuchengco.