Philex Petroleum divests in Vietnam exploration firm for P2.1B

MANILA, Philippines - Philex Petroleum Corp., a listed energy firm headed by top businessman Manuel V. Pangilinan, said yesterday that it has divested its interest in Vietnam American Exploration Co. (Vamex) for P2.1 billion.

In a disclosure to the Philippine Stock Exchange, Philex said its subsidiary, Pitkin Petroleum Plc, has completed the sale of all its interests in the Vietnam exploration firm.

Proceeds from the sale would be used to fund other exploration activities, Philex said.

“As a result of this transaction, the company (Philex) will record a gain on sale of approximately P200 million. Pitkin intends to use the proceeds from this transaction together with its existing financial resources to fund exploration activities on its existing assets and to acquire new oil and gas exploration assets,” Philex said.

In 2009, Philex announced that Pitkin, through Vamex, has completed drill testing of the Ca Rong Do (Red Emperor) discovery well in offshore Vietnam.

Aside from Pitkin, other investors in Vamex are Premier Oil (30 percent), PearlOil (15 percent), and Pan Pacific Petroleum (15 percent).

Based on tests conducted by project proponents in 2011, the Ca Rong Do discovery well flowed 3,265 barrels of oil per day and 8.1 million standard cubic feet of gas per day.

This, they said, demonstrated a working hydrocarbon system within the Nam Con Son basin where they had planned a second exploration well.

Pitkin Petroleum is a United Kingdom-registered upstream oil and gas company, which operates in Peru, Vietnam, the United States and in the Philippines, covering a total area of approximately 20,000 square kilometers both offshore and onshore.

It is a 50.28 percent-owned subsidiary of Philex Petroleum, a company that is 64.7 percent owned by Philex Mining, the Philippines’ biggest gold producer.