Philex raises stake in Pitkin Petroleum

MANILA, Philippines - Philex Petroleum Corp., the listed oil and gas firm owned by businessman Manuel V. Pangilinan, has increased its stake in Pitkin Petroleum, a British power company.

In a disclosure to the Philippine Stock Exchange (PSE), Philex said it increased its stake in Pitkin to 50.28 percent from 18.46 percent previously, with the additional shares acquired for $34.8 million.

Philex acquired the additional shares through a subscription of 10 million new ordinary shares and the purchase of 36.4 million shares from existing shareholders.

“The new and existing shares were purchased at $0.75 per share for a total consideration of $34.8 million, which was funded through advances from Philex Mining Corp. Philex Mining Corp. owns 64.79 percent of Philex Petroleum,” the company said in its disclosure.

Pitkin Petroleum, a United Kingdom registered oil and gas company, has operations in the Philippines, Vietnam, Peru and the US.

In Vietnam, Pitkin has a 25 percent interest in Vietnam Block 07/03, with drilling of two exploration and appraisal wells expected to begin in July 2013.

For its Peru stake, the British firm has a 25 percent interest in Peru Block Z-38. For this project, a drilling program of up to three exploration wells is set to begin in the fourth quarter of the year or early 2014 depending on rig availability.

Here at home, Pitkin has a 29.14 percent stake in service contract l4C2 offshore Northwest Palawan. The viability of redeveloping the West Linapacan oil field, which is part of the service contract, is currently being evaluated.

Philex has a 60.69 percent stake in Forum Energy Plc., another UK-based oil and gas company.

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