Philex Mining to provide bulk of oil search arm's financing needs

MANILA, Philippines - Pangilinan-led Philex Petroleum Corp. will source the bulk of its financing requirement for exploration from its parent firm Philex Mining Corp.

“We are arranging the relevant financing, the bulk of the funding anyway will come from Philex Mining,” said Philex Petroleum chairman Manuel V. Pangilinan.

Pangilinan said the rest of the funding for this year’s second phase exploration of the Service Contract (SC) 72 in West Palawan will come from other shareholders.

Philex Petroleum’s subsidiary Forum Energy Plc. has a 70-percent stake in SC 72, which is hopefully the “next Malampaya” gas field.

“There are other shareholders in Forum and and 30 percent of the concession is owned by Monte Oro. Most likely equity funding,” Pangilinan said.

The Razon group owns the remaining 30 percent stake in SC 72 through Monte Oro Resources and Energy Inc.

“So far we are on schedule with respect to our work program in SC 72. We hope we do not get delayed,” Pangilinan said.

Pangilinan said the company hopes to conduct drillings this year.

The project covers some 8,800 square kilometers in offshore West Palawan. The area is estimated to contain 3.4 trillion cubic feet of gas.

The second phase of the SC 72 drilling will start before June despite a territorial dispute among the Philippines, China, Vietnam and Taiwan for the resource-rich Spratly Islands in the West Philippine Sea (South China Sea). It will be the first well drilling in the area since the 1980’s.

Last year, Philex Petroleum posted record-high earnings of P537.5 million on the back of petroleum sales and one-time gains.

The latest data showed that Philex Petroleum turned around to being profitable from incurring a comprehensive net loss of P111.69 million in the previous year.

Philex Petroleum, which listed in the local bourse by way of introduction in September, is the subsidiary of Philippines’ largest miner Philex Mining Corp.