UPSTREAM oil and gas firm PXP Energy Corp. has tapped a $600,000 (P34.6 million) loan from Philex Mining Corp. and Kirtman Ltd., both shareholders of the company, to finance its working capital.
PXP borrowed $300,000 each from Philex and Kirtman, with the loan carrying an interest rate of LIBOR plus a 3.5% margin per annum, the Pangilinan-led firm said in a stock exchange disclosure on Wednesday.
“The proceeds of these notes will be used to partially fund the group’s working capital at least during the next 12 months,” the company said.
Philex, another Pangilinan-led firm, holds a 30.4% interest in PXP.
For the second quarter, PXP posted a wider attributable net loss of P13.37 million, compared with P6.55 million in the same period last year, amid lower revenues and higher expenses.
Petroleum revenues declined by 22.9% to P12.82 million, while costs and expenses rose by 14.6% to P25.21 million.
Last week, PXP said it subscribed to an additional 131.56 million ordinary shares in Canada-based FEC Resources, Inc., effectively raising its stake to 81.25% from 78.39%.
FEC holds a 6.8% interest in Forum Energy Ltd. (FEL), the designated operator of Service Contract 72 Recto Bank, an offshore petroleum license located off the western coast of Palawan in the West Philippine Sea.
At the local bourse on Wednesday, shares of the company declined by 0.42% to P2.35 apiece. — Sheldeen Joy Talavera
