PXP Energy Corp. on Tuesday said that its subsidiary, Forum Exploration Inc., (FEI) would be issuing new common shares to convert shareholder advances from Forum Energy Philippines Corp. (Fepco) into new equity.
In a disclosure, PXP said the board and stockholders of Forum Exploration approved the issuance of 561 million new common shares at a par value of P1.00 each for the conversion of Fepco shareholder advances, amounting to some $10.2 million (about P561 million), into equity in Forum Exploration.
The transaction remains subject to the completion of required documentation and regulatory filings.
PXP said the conversion “is intended to strengthen FEI’s balance sheet and improve its capital position by reducing outstanding obligations.”
Upon completion, Fepco’s ownership interest in Forum Exploration will increase to 91.65 percent from 66.67 percent.
Forum Exploration, which holds a 100-percent operating interest in Service Contract 40 in Northern Cebu, is an indirect subsidiary of PXP through the latter’s 98.08-percent effective interest in Forum Energy Ltd., which holds 100 percent of Fepco.
PXP Energy shares on Tuesday added P0.11, or 3.81 percent, to close at P3.00 per share.
