PXP raises stake in Forum Energy to 97.88%

PANGILINAN-LED upstream oil and gas firm PXP Energy Corp. has increased its stake in subsidiary Forum Energy Ltd. through a share swap with Hong Kong-based Tidemark Holdings Ltd., listed mining firm Atok-Big Wedge Co., Inc. (AB) said on Tuesday.

Under the transaction, PXP issued 430.24 million common shares valued at P1.56 billion to Tidemark in exchange for 24.13 million Forum Energy shares, AB disclosed to the stock exchange on Tuesday.

The shares were issued at P3.62 each.

Tidemark, a wholly owned subsidiary of AB, and PXP were both shareholders of Forum Energy, a company incorporated in the United Kingdom.

Forum Energy, through its wholly owned subsidiary Forum (GSEC 101) Ltd., is the operator of Service Contract (SC) 72 with a 70% participating interest. 

SC 72 covers the Recto Bank basin in the West Philippine Sea.

The Securities and Exchange Commission approved the transaction last month.

Following the share issuance, PXP’s effective ownership in Forum Energy rose to 97.88% from 77.88%, while Tidemark fully exited its direct stake in the company. PXP’s effective interest in SC 72 also increased to 68.5% from 54.5%. 

Tidemark now holds an 18% stake in PXP’s total issued and outstanding capital stock.

PXP and Forum Energy said last month that they remain committed to SC 72 and SC 75, an exploration block in Northwest Palawan, despite the extended force majeure imposed on both contracts. — Sheldeen Joy Talavera