PXP Energy poised to raise stake in oil and gas prospect

MANILA, Philippines — PXP Energy Corp. entered into a shares swap deal with Hong Kong-based firm Tidemark Holdings Ltd. involving P1.56 billion worth of shares.

In a disclosure on Monday, PXP Energy said its board approved the issuance of 430.2 million common shares in exchange for Tidemark’s 24.1 million shares in Forum Energy Ltd.

Tidemark is a subsidiary of listed Atok Big Wedge Co. Inc. Both PXP Energy and Tidemark are shareholders of Forum Energy, a corporation organized under the laws of the United Kingdom.

The issue price is set at P3.62 apiece or a total of P1.56 billion, subject to the Securities and Exchange Commission’s confirmation of the valuation.

READ: PXP net loss down to P2.6B on better output, sales

PXP Energy said that, through the deal, its effective interest in Forum Energy will increase to 97.88 percent from 77.88 percent.

Forum Energy, through its unit Forum (GSEC 101) Ltd., is the operator of Petroleum Service Contract No. 72 with a 70-percent participating interest.

If the deal pushes through, PXP Energy’s effective stake in SC 72 — a prospective petroleum-rich area covering an 8,800-square-kilometer offshore area west of Palawan — will rise to 68.5 percent from 54.55 percent.

In turn, Tidemark will own 18 percent of the resulting total issued and outstanding capital stock of PXP Energy.

“PXP shall apply for the listing of the PXP shares with the PSE (Philippine Stock Exchange) and shall obtain the shareholder approval of the transaction for this purpose,” the company said.