Philex trims losses in 1st half
Philex Petroleum Corp. slashed its losses in the first half of 2014 by 81.93 percent to P40.7 million, from P225.2 million in the same period last year, on higher revenues and reduced expenses.
“The lower net loss was mainly due to higher petroleum revenues of unit Forum Energy Plc in SC (Service Contract) 14 C1 Galoc, reduction in general and administrative expenses, decrease in interest expenses, and lower foreign currency exchange losses,” Philex told the Philippine Stock Exchange.
Philex Petroleum’s revenue from the petroleum business grew to P195.045 million (from P95.29 million) and from its coal business to P3.197 million (from P1.031 million).
During the period, the company said, the Department of Energy (DOE) granted Forum’s request to extend the completion date of the second Exploration Sub-Phase of SC 72 by a year to Aug. 15, 2016. The sub-phase 2 exploration work program comprises the drilling of two wells.
Philex Petroleum holds a total direct and indirect interest in Forum of 60.45 percent.
Forum holds a 70 percent operating interest in SC 72.
The Peruvian oil and gas regulator, Perupetro S.A., approved Karoon’s (operator) application to place Peru Block Z-38 into force majeure.
The application for force majeure—or when events happen beyond the control of the parties—was requested on the basis of Karoon being unable to secure a suitable drilling unit within the required timeframe on the Pacific side of the Americas.
“The force majeure was granted effective Sept. 1, 2013. As a result, the term of the current third exploration period will have approximately 22 months remaining once the force majeure is lifted,” Philex Petroleum said.
Pitkin Petroleum Plc holds a 25-percent participating interest in Peru Block Z-38. Pitkin is a 53-percent owned subsidiary of Philex Petroleum.
On July 2, 2014, Pitkin repurchased 7.93 percent of total issued shares at a price of $1 per share. Philex Petroleum sold 2 million or 2.84 percent of its Pitkin shares. Philex Petroleum’s shareholding in Pitkin after the repurchase of shares increased from 50.29 percent to 53.07 percent.
