PXP hikes stake in Forum Energy

MANILA, Philippines — Pangilinan-led PXP Energy Corp. has completed a P1.56-billion share swap with Hong Kong’s Tidemark Holdings Ltd., hiking its stake in the operator of a petroleum service contract in the West Philippine Sea.

PXP issued about 430.24 million common shares for P3.62 apiece to Tidemark in exchange for around 24.13 million shares held by the latter in Forum Energy Ltd. (FEL), the designated operator of Service Contract 72 Recto Bank.

Listed Atok-Big Wedge Co. Inc., which fully owns Tidemark, confirmed the development to the Philippine Stock Exchange.

After the share swap, PXP’s effective interest in FEL increased to 97.88 percent from 77.88 percent, with its stake in SC 72 also rising to 68.5 percent from 54.5 percent.

Tidemark, in turn, has no more direct interest in FEL but now holds 18 percent of the resulting total issued and outstanding capital stock of PXP.

The transaction, announced in May 2024, was finalized after the Securities and Exchange Commission approved last month the valuation of the Tidemark FEL shares to be applied as payment for the issuance of PXP shares to the Hong Kong firm.

FEL, through wholly owned Forum (GSEC 101) Ltd., has a 70-percent participating interest in SC 72, a primary asset of PXP.

Exploration activities in the Recto Bank remain under force majeure due to geopolitical tensions in the disputed waters.

In the meantime, PXP continues to await the awarding of the exploration contracts in two petroleum blocks in the Bangsamoro Autonomous Region in Muslim Mindanao.

The company is primarily engaged in the exploration, maturation and production of hydrocarbon sources.