PetroEnergy to raise P1B through new shares

Oil exploration, mining and energy group PetroEnergy Resources Corp. (PERC) plans to raise as much as P1 billion to fund renewable energy projects and other investments by selling new shares to existing shareholders.

The board of directors has already approved the plan to conduct a stock rights offering, the company disclosed to the Philippine Stock Exchange on Thursday. “The offer price and other details of the offer will be announced as soon as determined,” the disclosure said.

Shares of PERC fell by 5.15 percent to P8.11 per share on Thursday, giving it a market capitalization of P3.51 billion.

Formerly Petrotech Consultants Inc., PERC was established in 1994 to provide specialized technical services to companies exploring for oil in the Philippines. In 1997, the company changed its name, simultaneous with the change in its primary purpose from rendering technical services to oil exploration and development and mining activities. In 2009, the Securities and Exchange Commission approved PERC’s entry into the business of generating power from conventional and renewable sources of power.

The principal properties of PERC include oil areas located in the Philippines and in Gabon, West Africa. Its local service contracts are located in Northwest Palawan, offshore Mindoro and East Visayan Sea.

PERC mainly derives its revenues from its Gabon operations. Total crude production in 2016 reached 6.15 million barrels, with daily production ranging from 11,740 to 22,910 barrels per day from four oil fields: Etame, Avouma, Ebouri and North Tehibala.

The Philippine contracts are in the exploration stage and some of these are being farmed out to reduce risk inherent to the business.

PERC is targeting a 33-percent growth in net income this year on higher electricity sales from renewable energy plants, including its solar farm in Tarlac. —DORIS DUMLAO-ABADILLA