PXP Energy Corp. has increased its interest in oil and gas exploration firm Forum Energy Ltd. to 69.5 percent from 48.8 percent through a transaction worth $11.8-million (about P594 million).
“This increases PXP’s total direct and indirect interest in Forum from 67.5 percent to 77.5 percent,” the company said.
PXP said it subscribed to about 39.4 million new ordinary shares at $0.30 per share.
The company said the deal was funded through the conversion into equity of a portion of its $18.3-million loan to a subsidiary of Forum Energy.
The main asset of Forum Energy, an oil and gas exploration and production firm based in the United Kingdom, is a 70-percent interest in petroleum license Service Contract No. 72 (SC72) issued by the Department of Energy.
SC72 covers an offshore area 8,800-square kilometers west of Palawan Island in the West Philippine Sea.
PXP earlier said it incurred an audited consolidated net loss of P36.4 million in 2016, a decrease of 75 percent from the net loss of P144 million recorded in 2015.
“The lower net loss was primarily attributable to a 76-percent reduction in overhead resulting from management’s continuing cost reduction efforts and a recovery in impairment loss, net of lower petroleum revenues contributed by [Forum Energy] arising from the decline in oil output and lower oil prices,” PXP said.