PXP Energy Corp. trimmed its losses to P3.7 million in the first quarter, the company said on Thursday, in part because of higher petroleum revenues resulting from an improvement in the price of crude oil during the period.
In the same period last year, the company posted a net loss attributable to equity holders of the parent firm of P8.4 million, or more than twice that of the first three months of 2018.
PXP Energy told the stock exchange that its consolidated petroleum revenues rose 18% to P30.7 million, as a 3.4% decline in crude production was offset by a 24% improvement in crude oil prices.
Consolidated cost and expenses went up by 12% to P41.5 million because of the “higher depletion cost offset by continuous containment of group overhead,” the company said.
Among the developments during the quarter is the new partner of a Peruvian unit of a company controlled by PXP Energy in an offshore exploration project in Peru.
PXP Energy, citing a disclosure by Karoon Gas Australia Ltd., announced on Jan. 10 the farm out of a 35% interest in offshore exploration Block Z-38, Tumbes Basin Peru to Tullow Peru Ltd., a wholly owned subsidiary of Tullow Oil Plc.
Pitkin Petroleum Peru Z-38 SRL, a wholly owned subsidiary of Pitkin Petroleum Ltd. (PPL), holds a 25% participating interest in Peru Block Z-38. PXP Energy holds a 53.43% interest in PPL.
Under the farm-out agreement, Tullow will acquire a 35% interest in the block by funding 43.75% of the cost of the first exploration well, capped at $27.5 million at 100%, beyond which Tullow will pay its 35% share.
Tullow is also to pay Karoon $2 million upon completion of the well, with a further $7 million payable upon declaration of commercial discovery and submission of a development plan to Perupetro, Peru’s state-run company. — Victor V. Saulon
