Philex Petroleum Corp. (Philex Petroleum) said it incurred a consolidated net loss of P118.1 million in the nine months of 2015, down by about two-thirds from last year’s comparative net loss of P376.9 million.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Philex Petroleum said it continued to incur losses because of lower petroleum revenues.
It said the net loss decreased year-on-year in the absence of a one-off impairment charge taken last year related to the pull-out of unit Pitkin Petroleum from Service Contract 6-A from the Octon block.
“The net loss primarily resulted from lower petroleum revenues contributed by its subsidiary, Forum Energy Plc (Forum), due to a drop in crude oil prices and a lower production from Service Contract 14C1 Galoc,” said Philex Petroleum.
During a special shareholders’ meeting held on August 11, the pledge of Philex Petroleum’s shareholdings in subsidiaries to Philex Mining Corp. was approved by shareholders, representing at least two-thirds of the outstanding shares of the Company.
On August 11, Philex Petroleum confirmed that the Department of Energy (DOE) has granted a force majeure on Service Contract 75 (SC75).
SC 75 covers an area of 6,160 square kilometers in the offshore Northwest Palawan Basin, with water depths at 1,000 to 2,600 meters. It is located west of SC 58 and north of SC 63.
Under the terms of the force majeure, all exploration work at SC75 shall be immediately suspended effective from the end of its first sub- phase (SP-1) on December 27, 2015 until the date the DOE notifies the company to resume petroleum-related activities.
As a result, the second sub-phase (SP-2) of SC75 has been put on hold until further notice.
The terms of SP-2 and all subsequent sub-phases will be extended by the term of the force majeure.
Philex Petroleum said it will continue its efforts to reduce operating expenditures through the rationalization of its business structure and asset portfolio, particularly in the current low oil-price environment.
Philex Petroleum is an upstream oil and gas company which directly and indirectly owns oil and gas exploration and production assets located in the Philippines. It also indirectly owns exploration assets located in Peru.