Pangilinan-led PXP hikes stake in Forum Energy

MANILA, Philippines - Upstream oil and gas firm PXP Energy Corp. has raised its stake in London-listed Forum Energy Ltd. for $12 million.

PXP subscribed to 39,350,920 new ordinary shares of Forum to increase its direct shareholding from 48.8 percent to a controlling 69.5 percent.

The new shares were issued at approximately $0.30 per share or a total consideration of $11.805 million, funded through the conversion into equity of a portion of PXP’s $18.3-million loan to a Forum subsidiary.

Following the acquisition, PXP now has a total direct and indirect interest in Forum of 77.5 percent from 67.5 percent.

Meanwhile, PXP’s partner Tidemark Holdings Ltd. also subscribed to 6,666,667 shares of Forum for $2 million, paid for in cash.

Forum is a UK-incorporated oiI and gas exploration and production company focused on the Philippines.

Its principal asset is a 70-percent interest in Service Contract (SC) 72, an 8,800-square kilometer offshore petroleum license situated west of Palawan in the West Philippine Sea. SC 72 is one of the oil and gas projects under moratorium due to the country’ territorial dispute with China.

Another project under suspension is SC 75 in northwest Palawan, where PXP Energy has a direct operating interest of 50 percent.

Earlier, PXP chairman Manuel Pangilinan expressed optimism drilling works can proceed in those projects under moratorium by next year amid the Philippines’ strengthening relations with China.

Pangilinan said the overall atmosphere created by President Duterte is “more conciliatory” and “more investor friendly” which will aid in the resumption of discussions over the development of oil and gas exploration projects in the disputed waters.

But once Philippine and Chinese governments agree on lifting the moratorium over the West Philippine Sea, he said Forum Energy can immediately start its work program in SC 72.