Basic Consolidated reduces capital to P500 million

The Securities and Exchange Commission has approved Basic Consolidated Inc.’s reduction in authorized capital stock to P500 million from P2 billion as part of the company’s quasi-reorganization towards cleaning up its balance sheet.

In a disclosure to the Philippine Stock Exhange, Basic said the SEC also approved the reduction of the par value of its shares from P1 to P0.25 per share. The number of the company’s shares remains at two billion.

Likewise approved was the change in its corporate name to Basic Petroleum Corp.

Basic said the equity restructuring was made so that the reduction surplus arising from the decrease in the par value of its shares will be used to wipe out the accumulated deficit. This will pave the way for possible direct investments for its projects, both oil and non-oil.

The company has oil concession areas in Mindoro, Palawan and the Sandakan Basin (Sulu Sea).

For the quarter ended Sept. 30, 2006, Basic incurred a net loss of P22.44 million out of total revenues of P 2.83 million. Total costs and and expenses amounted to P25.27 million.

Basic sold its 500 million shares or 100 percent stake in Basic Petroleum and Minerals Inc. to Forum Energy Plc. early this year for $17 million.

Forum Energy is the joint venture company formed by Canadian firm Forum Energy Corp. and British company Sterling Energy Plc. to develop oil, gas and coal sources in the Philippines.