Philex Petroleum gets nod to hike capital

MANILA, Philippines - Philex Petroleum Corp., a wholly-owned subsidiary of copper-gold producer Philex Mining Corp., has secured the Securities and Exchange Commission’s approval to increase its authorized capital stock from P2 billion to P6.8 billion.

Documents filed with the SEC show that out of the P4.8 billion increase in capitalization, P1.2 billion has been paid for by parent firm Philex.

The infusion of new capital will allow Philex Petroleum to beef up its oil and petroleum assets.

Philex Petroleum has a 33 percent interest in Forum Energy Plc (FEP), a UK-based company listed at the Alternative Investment Market of the London Stock Exchange.

FEP, through its 70 percent-owned subsidiary, Forum (GSEC 101) Ltd., holds Geophysical Survey and Exploration Contract (GSEC) No. 101 over the Sampaguita natural gas discovery in the northwest coast of Palawan, Philippines.

FEP has a pending application for the conversion of this GSEC into a service contract, after which further exploration of the Sampaguita property can be commenced.

Philex Petroleum also owns 6.4 percent of Pitkin Petroleum Ltd (Pitkin), a Texas-based junior exploration company in the United States currently producing on a small scale basis in Louisiana but with properties in offshore Vietnam and Peru.

Philex Petroleum also acquired 20 percent of PetroEnergy Resources Corp., a local company listed in the PSE engaged in oil exploration and in providing technical services to companies exploring for oil in the Philippines.

The investment of Philex Petroleum in FEP brought the Philex Group’s total interest to 61 percent taken together with the 28.4 percent interest of FEC Resources, Inc., a 50.7 percent-owned Canadian subsidiary of Philex Mining Corp.

The investment in Pitkin brought the Philex Group’s total investment to 21 percent taken together with the holdings of Philex Mining.

Aside from PPC and Pitkin, Philex Mining also has investments in Brixton Energy & Mining Corp. (BEMC) which is allowed to extract coal from a 2,000 hectare property in Zamboanga Sibugay for 32 years commencing on May 5, 2008.