PXP unit to convert P561 million in debt into new shares for FEPCO

FORUM EXPLORATION, INC. (FEI), an indirect subsidiary of Pangilinan-led upstream oil and gas exploration firm PXP Energy Corp., will convert P561 million of its debt into new common shares to be issued to Forum Energy Philippines Corp. (FEPCO).

In a regulatory filing on Tuesday, PXP said FEI will issue 561 million new common shares at P1 each to FEPCO as part of the conversion.

“The conversion is intended to strengthen FEI’s balance sheet and improve its capital position by reducing outstanding obligations,” PXP said.

FEI is an indirect subsidiary of PXP through its 98.08% effective interest in Forum Energy Ltd., which holds a 100% interest in FEPCO.

Once completed, FEPCO will increase its ownership in FEI to approximately 91.65% of the total issued and outstanding shares, from 66.67%.

FEI holds a 100% operating interest in Service Contract (SC) No. 40 in Northern Cebu, a key asset within PXP’s portfolio.

SC 40, or the North Cebu Block, is located in the Visayan Basin, covering the northern part of Cebu Island and adjacent offshore areas in the Central Tañon Strait and the Visayan Sea.

Earlier this year, PXP said it continues to evaluate options to advance the block, including potential farm-in arrangements, subject to the finalization of commercial terms and funding considerations.

In 2025, PXP reported a wider core net loss of P50.2 million, from P33.3 million in the previous year, due to lower output from the Galoc Field, softer crude prices, and higher financing and foreign exchange-related charges.

Consolidated petroleum revenues fell by 16.9% to P49.8 million from P67 million, amid weaker crude prices.

At the local bourse on Tuesday, shares in the company rose by 3.81% to close at P3 each. — Sheldeen Joy Talavera