MANILA, Philippines - Philex Mining Corp. and Philex Petroleum Corp. yesterday announced that an agreement was reached with United Kingdom-based Forum Energy Plc to increase and extend the repayment of its $15-million loan.
In a regulatory filing, Philex Mining said the repayment of the loan it provided to Forum Energy’s wholly-owned subsidiary Forum Philippines Holdings Limited has been moved to Nov. 24, 2016 from the original payment due date of Nov. 24, 2013.
The loan has also been increased to $18 million as the initial $15 million had already been used up.
Philex Mining extended the loan to Forum Philippines in November 2010 when it had not yet spun off its oil exploration subsidiary Philex Petroleum for listing.
After the spin off in 2011, Philex Mining now holds 64.79 percent of Philex Petroleum.
Philex Mining has assigned its rights and obligations under the loan facility to Philex Petroleum.
Philex Petroleum CEO Carlo Pablo said the increase in the loan facility would provide for working capital needs of Forum’s existing service contracts.
“It’s a financial management decision. It is simpler than raising capital†said Pablo, adding,“This will provide for the working capital needs of Forum’s existing service contracts.â€
Philex Petroleum holds a 60.49-percent interest in Forum Energy.
Forum Energy operates Service Contract 72 in the Recto Bank in which it has a 70-percent stake. The remaining stake is held by Monte Oro Resources and Energy Inc. The license covers the Sampaguita Gas Field as well as several oil and gas leads.
It also operate Service Contract 40 in Cebu in which it has a 66.7-percent interest. The license covers the onshore Libertad Gas Field, Maya discovery, and several other prospects including onshore Jibitnil Island and Tambongon.
Philex Petroleum also has interests in other petroleum and coal mining operations around the country.