PXPENERGY.COM.PH

PANGILINAN-LED PXP Energy Corp. said it is exploring investments in new or near-ready producing oil fields that can generate earlier cash flow, as the term of the service contract (SC) governing its only producing oil field approaches expiration.

“With Galoc production approaching the end of field life, the company is also exploring opportunities to reinvest in producing or near-term development fields that could generate earlier cash flow, all while maintaining a clear focus on its upstream business,” PXP said in a regulatory filing on Thursday.

The SC covering the Galoc Oil Field in northwest Palawan, which has produced about 25 million barrels of oil since 2008, is set to expire on Dec. 17.

PXP noted that the field remains commercially viable despite natural production decline and can continue operations beyond the contract’s term.

The company said it is also ensuring sufficient financial flexibility as it advances early-stage petroleum exploration in the southwestern Sulu Sea.

PXP remains focused on “preserving liquidity and maintaining readiness while progressing early-phase technical assessments” under its recently awarded petroleum SCs, the company said.

Earlier this month, PXP and its joint venture partners secured three contracts, covering two Sulu Sea blocks — SC 80 and 81 — and SC 86, covering the Octon Block in northwest Palawan.

The Sulu Sea blocks are jointly administered by the Department of Energy and the Bangsamoro Autonomous Region in Muslim Mindanao through its Ministry of Environment, Natural Resources, and Energy.

“The Company continues to maintain prudent operations across its portfolio and is preparing to participate in technical work programs committed to the government under these newly awarded blocks,” PXP said.

The company also remains committed, together with Forum Energy Limited, to unlocking the long-term potential of assets in the West Philippine Sea amid ongoing maritime dispute suspensions, it said.

PXP awaits the final government review for two additional service contracts in the northwest Palawan basin, expected within the next few months.

For the nine months ending September, the company posted a wider attributable net loss of P39.8 million, up from P14.8 million a year ago.

Core net loss reached P32.8 million from P17.8 million, due to softer crude prices, lower Galoc production volumes, and higher interest charges.

Consolidated revenues fell 22.4% to P50.3 million, reflecting a 13.5% decline in sales volume to 414,124 barrels and a 13.8% drop in average realized crude price to $70 per barrel.

Costs and expenses rose 7.7% to P84.2 million, largely due to a one-off overhead increase from a foreign subsidiary.

On Thursday, PXP shares closed at P2.36, down six centavos or 2.48%. — Sheldeen Joy Talavera

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