PXP Energy Corp., the listed oil and gas exploration firm of the MVP Group, said Friday it has raised its stake in FEC Resources Inc. to 81.25 percent from 78.39 percent by converting USD1.16 million in loans into 131.6 million new shares.
As a result, PXP’s economic interest in Forum Energy Limited (FEL) climbed to 98.08 percent from 97.88 percent, and its interest in Service Contract 72 (SC 72) rose slightly to 68.65 percent.
FEC, based in British Columbia, is an investment holding company whose main asset is a 6.8 percent stake in FEL, a UK-incorporated firm focused on oil and gas exploration in the Philippines. FEL’s primary asset is its 70 percent operating interest in SC 72, an 8,800-square-kilometer block in Recto Bank—part of the disputed area in the West Philippine Sea.
While Forum Energy has secured a force majeure extension from the Department of Energy due to ongoing geopolitical tensions, PXP’s move signals continued confidence in the long-term potential of the block.
SC 72 is home to the Sampaguita gas discovery, where earlier seismic data suggests potential recoverable reserves of up to 2.5 trillion cubic feet of natural gas.
PXP’s decision to convert debt to equity underscores its strategic intent to secure new domestic energy sources, especially as Malampaya’s gas supply nears depletion, threatening the country’s power stability and energy self-sufficiency.
