PXP Energy takes over Pitkin for $3.5 million

MANILA, Philippines — Listed upstream oil and gas firm PXP Energy Corp. has taken over a UK-registered upstream oil and gas company with operations in Peru.

In a disclosure to the Philippine Stock Exchange, PXP Energy said it has acquired all remaining minority interest in Pitkin Petroleum Ltd. for $3.5 million.

“PXP Energy wishes to announce that, as part of its continued efforts on streamlining the corporate structure of subsidiaries involved in overseas oil and gas exploration projects, it has completed the acquisition of all remaining 46.57 percent interest in Pitkin Petroleum Ltd.,” PXP Energy president Daniel Stephen Carlos said.

Prior to the acquisition, PXP Energy owned 53.43 percent of Pitkin.

Carlos said the transaction was implemented through a share repurchase arrangement with the minority shareholders for a cash consideration amounting to $3.5 million.

With the acquisition, Pitkin has become a wholly-owned subsidiary of PXP Energy.

Pitkin has a 25 percent participating interest in Peru Block Z-38 through wholly owned subsidiary Pitkin Petroleum Z-38 SRL.

Block Z-38 sits in the heart of the Tumbes Basin, adjacent to the prolific oil producing Talara Basin which has produced 1.7 billion barrels of oil equivalent since 1880.

The Tumbes Basin has a proven working petroleum system and evidence suggests the prospects in Z-38 are accessing the same source rocks as the giant onshore Talara Basin fields.

PXP Energy, meanwhile, directly and indirectly owns oil and gas exploration and production assets in the country.

It holds 50 percent interest in service contract (SC) 75 located in Northwest Palawan, and also has a total economic interest of 54.36 percent in SC 72.