Hollywood fears 2020 drop, with no Avengers Endgame or Frozen ahead

January 10, 2020 | 12:07 am

MOVIE TICKET sales are expected to fall again in 2020 without the full force of the Avengers to save them.

After a year marked by Walt Disney Co. hits, including the biggest animated release ever in Frozen II, a Star Wars trilogy finale, and an Avengers flick that ranks as the best-selling film of all time, 2020 will feel like a hangover, according to box-office analysts. While the year will certainly have some blockbusters, including a live-action version of Mulan and the Marvel installment Black Widow, the slate doesn’t include the large volume of highly anticipated franchise features that marked 2019.

“This was a crazy year for Disney,” said Jeff Bock, an analyst at Exhibitor Relations. “It was like watching Halley’s Comet zoom by: something we might not see for another 75 years.”

Star Wars and the Avengers both reached conclusions of sorts in their story lines that were built up over years. In total, Disney released seven of 2019’s nine films expected to finish their runs with a worldwide gross of more than $1 billion, the best year ever for a studio.

Along with other mega-hits, like Joker from AT&T Inc.’s Warner Bros. and Spider-Man: Far From Home from Sony Corp., Disney’s bonanza helped the domestic box office generate revenue of about $11.4 billion in 2019. Even so, that was a decline from the record $11.9 billion in 2018, according to Comscore Inc.

While this year studios will still release superhero and nostalgia-centered films, the two movie categories that consistently generate releases with more than $1 billion in ticket sales, they won’t resolve long sagas the way Avengers: Endgame and Star Wars: The Rise of Skywalker did.

“It looks like Black Widow will be a success, but it’s about sheer quantity,” said Shawn Robbins, an analyst at Box Office Pro. The Avengers and Star Wars flicks “were two big event movies the studio had been building up for close to a decade; those are big cultural events for not just fans, but average moviegoers.”

Investors are worried about the year ahead. AMC Entertainment Holdings Inc., owner of the biggest US cinema chain, tumbled as much as 7.3% on Wednesday to a record low after Deadline reported that Chief Financial Officer Craig Ramsey issued a downbeat forecast at a conference. Rival Cinemark Holdings Inc. fell as much as 5%.

The market for smaller-budget, original adult dramas is unclear. Though some were hits in 2019, like Lions Gate Entertainment Corp.’s Knives Out, streaming has put studios under pressure to focus on their big-budget fare, according to Amine Bensaid, an analyst at Bloomberg Intelligence.

Web-based giants Netflix Inc. and Amazon.com Inc. are gaining attention and major award nominations for films including The Irishman while mostly skipping the theaters. That makes it harder for studios to compete for eyes when a large volume of original content is available at home.

All but one of the 10 most anticipated movies in 2020 are superhero flicks, sequels, or animated family fare, according to a survey by Fandango. The top three movies are DC and Marvel installments, while the fourth is the Mulan remake and the fifth is the James Bond film No Time to Die.

But with fewer long-awaited tentpole films, original fare may have more room to break out, according to Paul Dergarabedian, an analyst at Comscore. For example, the Christopher Nolan-directed Tenet is scheduled to be released in July, with many of the key details about the plot shrouded in mystery.

“The conventional wisdom last year was that given the number of franchises and sequels, we’d have a record year,” Dergarabedian said. “We need to give 2020 a chance to get started. There could be films in the mix that are fresh and original that could come out of nowhere and over-perform.” — Bloomberg

SEC warns against investing in Inochi rewards scheme

January 10, 2020 | 12:07 am

By Jenina P. Ibañez

THE Securities and Exchange Commission (SEC) is warning the public against investing in a rewards program called Inochi/Inochi Rewards, which it said is not authorized to collect money.

In an advisory posted on its website, the country’s corporate regulator said Inochi/Inochi Rewards is neither recognized by the SEC as a corporation or partnership, nor is it authorized to solicit investments from the public.

SEC warned the public against participating in investment solicitations from individuals representing Inochi/Inochi Rewards.

“The public is advised not to invest or stop investing in any investment scheme being offered by any individual or group of persons allegedly for or on behalf of Inochi/Inochi Rewards and to exercise caution in dealing with any individuals or group of persons soliciting investments for and on behalf of it.”

Inochi/Inochi Rewards dealers offer product packages that cost between P11,000 to P110,000. To attain membership, individuals are asked to buy a product package, from which they are told they would earn rewards points monthly for up to 12 months, depending on the business value of their chosen product package.

Members then expect to earn 10% from referrals, as well as overriding commissions for repeat purchases from other members in the group.

“Simply, an investor is entitled to receive passive income from the pool of investment gathered, while active income is acquired from recruitment bonuses,” the advisory said.

SEC said Inochi/Inochi Rewards sales persons, brokers, dealers, or agents enticing the public to invest or soliciting and recruiting through the Internet may be prosecuted and penalized with either or both a maximum fine of five million pesos or 21 years imprisonment.

Individuals who recruit others to invest in the venture or offer contracts or securities to the public may also be held criminally liable.

Names of all involved will also be reported to the Bureau of Internal Revenue to assess appropriate penalties or taxes.

Show band Music & Magic celebrates 40 years with a concert next week

January 10, 2020 | 12:06 am

THE 1980s show band Music & Magic is celebrating its 40^th year with a one-night concert on Jan. 14 at the Newport Performing Arts Theater in Resorts World Manila, Pasay City.

The show will feature all the members of the band: Jet Montelibano, Fe de los Reyes-Mendoza, Eva Caparas, Angeli Pangilinan-Valenciano, Vicky Sevilla-Pangilinan, Butch Elizalde, Nonoy Mendoza, Bobby Taylo, Jeannette Casuga-Trevia, piano virtuoso and musical arranger Toto Gentica, and Kuh Ledesma.

The band was created in 1979 when Mr. Montelibano, Mr. Gentica, and Ms. Ledesma moved to Manila from Bacolod, Negros Occidental to try their luck in the music scene. They formed a band called Ensalada and performed regularly at Holiday Inn Hotel’s El Camarote bar. After Ensalada disbanded, Music & Magic was created with the addition of new members including Nonoy Mendoza (drums), Butch Elizalde (lead guitar), Hector Pedero (bass), and vocalists Fe de los Reyes, Eva Caparas, and Angeli Pangilinan performing alongside Mr. Montelibano, Mr. Gentica, and Ms. Ledesma.

The band performed regularly at the Alibi Bar of the Regent of Manila hotel, singing cover versions of standards and chart-toppers of the 1960s to the ’80s.

Music & Magic catapulted Ms. Ledesma to stardom and she became a solo performer two years after the band was created. The band then introduced new members: Bobby Taylo, Vicky Sevilla-Pangilinan, and Jeannete Casuga-Trevias.

Aside from the Alibi Bar, the band also performed in Tavern-On-The Square in Makati City, Atlantis and Peppermint Park in Singapore, the Pyramid in Kuala Lumpur, Malaysia, the Shrine Auditorium in Los Angeles, Pechanga Resort in San Diego, and at the Folk Arts Theater and the Araneta Coliseum.

The band also opened concerts for international artists like Freddie Hubbard, Stanley Clarke, and Harvey Mason.

The Jan. 14 show will see the band revisit crowd favorites including their renditions of Stephen Schwartz’s “Corner of the Sky” from the Broadway musical Pippin and “Don’t Cry for Me Argentina” from Andrew Lloyd Webber and Tim Rice’s musical Evita.

It will also feature performances from guests like Gary Valenciano, Zsa Zsa Padilla, and Lou Bonnevie.

Celebrating 40 Years: Music & Magic 2020 will be on Jan. 14, 8 p.m., at the Newport Performing Arts Theater in Resorts World Manila, Pasay City. Tickets are available at ticketworld.com.ph, with prices range from P1,500 to P8,000. — ZBC

SM Prime seeks to raise P100 billion from fixed rate bond offering

January 10, 2020 | 12:06 am

SM Prime Holdings, Inc. has applied for the shelf registration of P100-billion debt securities with the Securities and Exchange Commission (SEC).

In a notice to the public published in a newspaper Thursday, the regulator said the Sy-led conglomerate has applied to offer the fixed rate bonds which will have an initial tranche of up to P15 billion and an oversubscription option of up to P5 billion.

This phase of the offer, the notice said, will consist of five-year Series K bonds that are due in 2025 and seven-year Series L bonds that are due in 2027.

The P80-billion remainder from the shelf registration will be offered within three years from the SEC’s approval of the debt securities.

In its offer supplement posted on its website, SM Prime said it plans to begin the offer in February. The bonds will be issued in scripless form with minimum denominations of P20,000 each and in multiples of P10,000 thereafter.

If the oversubscription option is utilized, the company expects to generate total net proceeds of P19.68 billion, which it plans to use to finance capital expenditures and mall expansion projects through 2022.

SM Prime had tapped BDO Capital and Investment Corp. and China Bank Capital Corp. as joint issue managers for the issuance. Joint bookrunners and joint lead underwriters are BDO Capital, China Bank Capital, BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

The bonds will be listed at the Philippine Dealing & Exchange Corp. They were previously rated by local debt watcher Philippine Rating Services Corp. a credit rating of PRS Aaa.

SM Prime posted an attributable net income of P27.6 billion in the nine months ending September, up 18% from a year ago, as revenues grew 14% to P85.03 billion.

Shares in the company at the stock exchange increased 55 centavos or 1.33% to P42 apiece on Thursday. — Denise A. Valdez

PSBank starts offer of three-year bonds

January 10, 2020 | 12:05 am

PHILIPPINE SAVINGS Bank (PSBank) is looking to raise P3 billion via peso-denominated fixed-rate bonds to diversify its funding sources.

In a disclosure to the local bourse, Metropolitan Bank & Trust Co.’s (Metrobank) thrift bank arm said it is offering P3 billion in three-year bonds, with the option to upsize. The offer period started yesterday and is set to run until Jan. 21.

The papers will have an interest rate of 4.5% per annum. Interest payments will be made quarterly and the principal will be paid at the maturity date in 2023.

“We firmly believe that this bond issuance comes at a most opportune time — at the beginning of an exciting new year and decade, most especially for individual and institutional investors who are looking at new investment alternatives,” PSBank President Jose Vicente L. Alde was quoted as saying in the statement.

In an e-mailed response, Mr. Alde said the latest bond issuance is the second tranche out of its P40-billion peso-denominated bond program that the bank launched in March last year.

“This P3-billion offer is our 2^nd tranche. The first tranche was issued on July 24, 2019, where we raised a total of P6.3 billion. These are all part of the P40-billion peso bond program,” he said yesterday.

Possible investors are required to have a minimum investment of P500,000, with increments of P100,000 thereafter.

The bonds are set to be issued and listed on the Philippine Dealing & Exchange Corp. next month, Feb. 4.

“As we continue to diversify our funding sources, we remain to be fully committed to upgrading our industry-leading products, services, and offerings for the maximum benefit of our customers,” Mr. Alde said.

Standard Chartered Bank serves as the sole arranger and the primary selling agent of the transaction, along with PSBank, Metrobank and First Metro Investment Corp. as other authorized selling agents.

In July last year, the Ty-led thrift bank raised P6.3 billion via the maiden bond issuance of its P40-billion bond program

This issue was double its initial P3-billion plan as the order book was four times oversubscribed in just five days, which also prompted the bank to cut the offer period.

The bond program launched last year is part of the bank’s initiatives to tap alternative funding sources and target both retail and institutional investors, Mr. Alde earlier said.

PSBank’s net earnings rose 20% in the third quarter of 2019 to P813 million on the back of the nine percent increase in its core revenues which were largely from interest income and fee-based income.

In nine months ended September 2019, the bank posted a P2.2-billion net income, up 8.4% year on year.

PSBank’s shares closed unchanged at P58.40 apiece on Thursday. — B.M. Laforga

Oscars to go host-less for 2nd year, ABC says

January 10, 2020 | 12:05 am

LOS ANGELES — The 2020 Oscars ceremony in February will again have no host, the head of ABC Television Entertainment said on Wednesday.

“Let me confirm it now. Together with the Academy (of Motion Pictures), we have decided there will be no traditional host again this year,” Karey Burke, president of ABC Entertainment, told television reporters.

The 2019 Oscars was the first in 30 years to have no host and saw the audience on broadcaster ABC rise to 29.6 million Americans, breaking a four-year trend of falling viewership for the live ceremony.

Burke said the decision not to have a host for the Feb. 9 event, the most prestigious awards in the movie business, was prompted by good reviews last year, when rock band Queen opened the show with a live performance to celebrate the box office success of the musical Bohemian Rhapsody.

Burke said organizers planned on “repeating what worked for us last year — huge entertainment value, big musical numbers, big comedy.”

“A lot of incredible elements have already come together and convinced us that we are going to have an incredibly entertaining show again,” she added, without giving details.

Nominations for the 2020 Oscars will be announced on Monday.

Finding a host for big awards shows has become increasingly difficult in recent years. Comedian Kevin Hart pulled out of the 2019 Oscars job after being slammed on social media for homophobic comments he had made in the past. He apologized.

Other comedians, including Ricky Gervais at Sunday’s Golden Globes, have met with criticism for being either too harsh, too political, or too soft in their jokes. — Reuters

Shippers on call to help evacuate workers from Middle East

January 10, 2020 | 12:05 am

THE Maritime Industry Authority (MARINA) is ordering shipping companies with Philippine-flagged ships to prepare to assist in the repatriation of Filipino workers from the Middle East if the need arises.

MARINA’s Flag State Advisory 2020-01 called on shipping companies and maritime enterprises on the contingency measures they should take concerning the escalating conflict between US and Iran.

The advisory, signed by MARINA’s Officer in Charge, Vice-Admiral Narciso A. Vingson Jr, said shipping lines and companies should “render assistance to any OFWs including evacuation, taking into consideration the safety and welfare of both crew members and OFWs.”

It also called on Philippine-registered ships “to accept if necessary, OFWs being repatriated.”

Shipping companies were also directed to notify the Philippine Embassy or Consulate of their ship’s presence in potential conflict areas to render assistance when needed.

MARINA also called on manning agencies to closely monitor the status of Filipino seafarers who are in Iran, Iraq, and Kuwait until tensions dissipate. According to MARINA Advisory 2020-02, these agencies are required to submit to MARINA a monthly report of seafarers deployed to Iran, Iraq, and Kuwait for the time being.

It also called on Filipino seafarers to render assistance to OFW evacuees on request. — Gillian M. Cortez

Jollibee turns to dollar bond market to pay for Coffee Bean

January 10, 2020 | 12:05 am

JOLLIBEE Foods Corp. (JFC) is looking at tapping the dollar bond market for the issuance of senior perpetual securities, the proceeds of which it will be used to partly pay for its acquisition of Coffee Bean & Tea Leaf (CBTL).

In a disclosure to the stock exchange on Thursday, JFC said its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) has mandated banks to organize the bond issuance.

It has identified Citigroup Global Markets Singapore Pte. Ltd. and J.P. Morgan (S.E.A.) Ltd. as joint global coordinators, and Citigroup, Credit Suisse, J.P. Morgan, and Mizuho Securities as joint lead managers and joint bookrunners for the issuance.

The banks will be arranging a series of fixed income investor meetings in Hong Kong, Singapore and London that will start on Jan. 13. JFC is eyeing a Regulation S offering of dollar-denominated guaranteed senior perpetual capital securities.

A Regulation S offer means the securities are executed in countries outside the United States. It can be used for the issuance of equity or debt securities to raise capital.

“Proceeds from the contemplated offering are intended primarily to refinance the short-term debt from the acquisition of International Coffee and Tea, LLC (The Coffee Bean & Tea Leaf), completed on September 24, 2019, as well as fund initiatives aligned with Issuer’s (JWPL) general corporate purposes,” JFC said.

“The Securities will be accounted for as equity, and will strengthen the balance sheet of the Guarantor (JFC), in line with its policy of prudent financial management,” it added.

The company has not specified as of writing the target amount for the bond offering.

JFC announced last year its acquisition of CBTL for $350 million on a debt-free basis. The deal expands the company’s presence to 27 countries where CBTL has footprint.

The company reported an attributable net income of P4.53 billion in the nine months to September, declining 26% from a year ago, as it absorbed losses in Smashburger and Red Ribbon.

Shares in JFC at the stock exchange fell P3.20 or 1.52% to retreat at P207 apiece on Thursday. — Denise A. Valdez

Bank of Thailand looking to ease capital outflow rules to curb baht

January 10, 2020 | 12:04 am

THE BANK of Thailand wants to curb the baht’s gains by easing restrictions on capital outflows. — *REUTERS*

THAILAND’S CENTRAL BANK will take further steps to ease restrictions on capital outflows in coming months as it tries to curb gains in the baht, Governor Veerathai Santiprabhob said.

The Bank of Thailand plans to increase the amount of proceeds exporters can hold overseas, liberalize foreign-currency deposit accounts and take steps to enable insurance companies to invest more abroad, Veerathai said in an interview Wednesday at his Bangkok office.

The Bank of Thailand has been struggling to rein in the baht after it gained almost 6% against the dollar over the past year, making it the best performer among Asian currencies. The appreciation has hurt exports and curbed tourism, denting two key industries in the trade-reliant economy. The baht weakened immediately after the governor’s comments Wednesday, and was up 0.1% against the dollar at 30.314 as of 8:40 a.m. Thursday in Bangkok.

Mr. Veerathai, 50, told Bloomberg Television’s Haslinda Amin that the baht hadn’t been moving in line with economic fundamentals last year. While the central bank doesn’t target a specific level, he said, it wants to ensure the currency’s moves are more in sync with regional and other emerging-market peers.

“All in all, we think the baht has appreciated too much,” the governor said. “People might say it has been the best-performing currency, but in Thailand we’re not happy about it. When the baht is not moving in line with fundamentals of the economy, it should not be considered the best performer.”

The central bank already has taken several measures to counter the baht’s gains: It cut interest rates to a record low last year, imposed measures in July to counter short-term inflows, and in November relaxed rules to spur outflows.

“It seems that the Bank of Thailand is able to control the baht now,” said Jitipol Puksamatanan, chief strategist at Krung Thai Bank Pcl in Bangkok. “I believe that it would restore the relationship between the baht and other Asian currencies, to support exports.”

Veerathai outlined additional steps that will be taken:

• In the next 1-2 months, increase the amount of proceeds exporters can hold overseas to $1 million per lading bill, from the current $200,000 cap, a step that will cover about 80% of Thailand’s exports.

• In the first half of the year, liberalize the foreign-currency deposit account framework so individuals and local companies can keep foreign currency in Thailand.

• Relax rules so insurance companies can invest abroad more easily.

The baht is seen as a relative safe haven, given Thailand’s substantial foreign exchange reserves and hefty current-account surplus. Veerathai said he expects capital flows to be “better balanced” this year because of plans by Thai companies to invest abroad, and a narrowing in the current-account surplus.

A member of Thailand’s monetary policy committee said Monday the central bank will aim to prevent the currency from strengthening beyond 30 to the dollar. Mr. Veerathai said the committee member may have been speaking for himself, and didn’t represent the central bank’s view.

“The focus is more on looking at the movements, rather than at a fixed level,” Mr. Veerathai said. If the currency is moving too fast or out of line with its peers, “then we would be very concerned about it.”

MONETARY POLICY
The governor said the central bank takes a “data-dependent approach” to monetary policy, and will be ready to take further policy action if economic growth disappoints.

The bank last month trimmed its 2020 growth forecast to 2.8%, compared with an estimated 2.5% for last year. Inflation remains below the new 1%-3% annual target.

As an oil importer and “energy-intensive” economy — Mr. Veerathai said Thailand consumes more energy per dollar of gross domestic product than other countries in the region — the Bank of Thailand is closely watching US-Iran tensions, wary of any spike in oil prices.

Still, the governor said the oil market shouldn’t affect monetary policy in the near future.

“In the short term, I don’t think it would change the current monetary policy stance,” which is still accommodative, he said. In addition, he said, “if oil prices are going to go up, that will lead to a smaller current-account surplus.”

With the benchmark interest rate already at an all-time low of 1.25%, Veerathai suggested the central bank could rely more on macroprudential steps going forward. Overall liquidity in the financial system is ample, but the bank would consider steps to deliver funds to small and medium enterprises, and to assist debt restructuring for troubled companies, he said.

“We have to look at more targeted policy instruments, making sure that liquidity gets transmitted to the sectors that need liquidity the most,” he said.

Mr. Veerathai, whose five-year term is due to expire in September, was coy about whether he wanted to extend it. Only when the selection process for a new governor begins in March will he decide whether to seek another term, he said. — Bloomberg

Justin Bieber says he has been fighting Lyme disease and mono

January 10, 2020 | 12:04 am

CANADIAN pop superstar Justin Bieber revealed on Wednesday that he had been battling Lyme disease and a serious case of mononucleosis but said he was overcoming his health issues.

On Instagram, Bieber noted that some people had recently criticized his appearance and suggested he was using drugs.

“They failed to realize I’ve been recently diagnosed with Lyme disease, not only that but had a serious case of chronic mono which affected my skin, brain function, energy and overall health,” Bieber wrote.

“It’s been a rough couple of years but getting the right treatment that will help treat this so far incurable disease,” he added. “And I will be back and better than ever.”

Bieber, 25, said his health challenges were among the topics to be chronicled on an upcoming 10-episode documentary series about his life that will be released on YouTube starting on Jan. 27.

In the past year, Bieber has written a series of Instagram posts to his 124 million followers talking about his struggles with depression, drug abuse and fame and crediting religion and wife Hailey Baldwin for his recovery.

This year, Bieber plans to release his first album in several years and embark on a North American tour. He released a single called “Yummy” last week. — Reuters

Ghosn joins list of execs fighting extradition

January 10, 2020 | 12:04 am

OUSTED Nissan boss Carlos Ghosn says he fled to Lebanon last week to escape a “rigged” justice system in Japan, where he believed he would not get a fair trial.

Ghosn, who faces four charges including hiding income and enriching himself through payments to dealerships in the Middle East, denies the allegations against him.

His stunning escape from Japan sees him join the ranks of other former or current corporate executives with pending extradition requests by foreign countries.

FORMER VOLKSWAGEN AG CEO MARTIN WINTERKORN
Winterkorn in March 2018 was indicted on four felony charges in connection with VW’s diesel emissions scandal. US prosecutors in Detroit issued a warrant for his arrest in May 2018, but Germany-based Winterkorn is unlikely to face the charges as Germany does not extradite its citizens to the United States.

Winterkorn, 72, was indicted on fraud and conspiracy charges. His lawyers have rejected the charges.

Known for his authoritarian management style, he was at the helm of the German automaker from 2007 until his ouster in 2015.

VW in September 2015 disclosed it had cheated on emissions tests for at least six years using secret software. The disclosure damaged the company’s reputation around the world and forced VW to spend more than $25 billion in the United States to settle claims.

HUAWEI CFO MENG WANZHOU
The chief financial officer of Huawei Technologies Co, Ltd. was arrested at Vancouver International Airport on Dec. 1, 2018, at the request of the United States, where she is charged with bank fraud and accused of misleading a bank about Huawei Technologies’ business in Iran. She has been under house arrest since.

Meng, 47, denies the charges and maintains she is innocent, while the United States is requesting her extradition. Meng’s legal team contested her extradition in a Canadian court, arguing the United States was using the request for economic and political gain.

An extradition hearing will begin on Jan. 20, this year in a federal court in Vancouver.

MALAYSIAN FINANCIER LOW TAEK JHO
Malaysian businessman Low Taek Jho, better known as Jho Low, is on the run from Malaysian and US authorities. He is alleged to be the mastermind behind the siphoning of billions of dollars from a Malaysia state fund.

Low has been charged in Malaysia and the United States over the alleged theft of $4.5 billion from the so-called 1MDB fund, set up by former Malaysian Prime Minister Najib Razak.

Low has denied wrongdoing and his whereabouts are unknown. He has been granted asylum in a third country, his spokesman has said, declining to identify the country.

Malaysian officials have said Low was believed to be hiding out in China. Malaysian police in November said Low had tried to purchase properties in Cyprus under a different name.

INDIAN LIQUOR AND AVIATION TYCOON VIJAY MALLYA
The Indian tycoon faces fraud charges resulting from the collapse of his defunct Kingfisher Airlines. Indian authorities have charged Mallya with financial crimes and allege he took out $1.4 billion in loans for Kingfisher from Indian banks which he had no intention of repaying.

Mallya, 64, has denied all wrongdoing and argued the case against him was politically motivated. India demands Mallya’s extradition from Britain, where he moved in 2016. A London court in December 2018 ruled Mallya should be extradited. But another court in July permitted him to appeal against the extradition and the case in pending.

BRITISH TECH BILLIONAIRE MICHAEL LYNCH
The United States earlier this month formally requested the extradition of Lynch, a British tech entrepreneur, who sold his data company Autonomy to Hewlett Packard in an ill-fated $11.1 billion deal, to face charges including securities fraud, wire fraud and conspiracy.

The US embassy in London submitted the extradition request for Lynch to stand trial in the United States.

Lynch, once hailed as Britain’s answer to Bill Gates, is currently battling the American IT giant in London’s High Court. HP seeks damages of $5 billion from Lynch and another former executive, alleging they inflated the value of Autonomy before selling it.

Lynch has denied the accusations, saying HP mismanaged the acquisition. He is counter-suing for loss and damages. — Reuters

Drillship reaches Peru exploration well, says PXP

January 10, 2020 | 12:04 am

PXP ENERGY Corp. said on Thursday that the drillship for an exploration well in Peru had reached the area for a late January schedule to spud, the listed company told the stock exchange on Thursday.

The disclosure came from an announcement in Australia by Karoon Gas Australia Ltd. about the arrival of Stena Forth Drillship in the Port of Callao in Lima, Peru ahead of drilling the Marina-1x exploration well located in Block Z-38 Tumbes Basin, Peru.

“The Stena Forth will remain at the Port of Callao for one to two weeks to refuel and change the crew before continuing on to the Marina-1x well location,” PXP Energy said.

“Karoon expects the vessel to clear customs and final permits to be received over the coming weeks. The well is expected to spud during the last week of January 2020,” it added.

Pitkin Petroleum Ltd., a 53.43%-owned subsidiary of PXP Energy, holds a 25% participating interest in Peru Block Z-38 located in offshore Peru.

Peru Block Z38’s Marina prospect has an unrisked best estimate prospective resource of 256 million barrels, of which 64 million barrels is the net to Pitkin. The prospect will be the first well to be drilled in Block Z-38. Pitkin is carried in the cost of Marina-1x and a second future well under a farm-in agreement signed with Karoon in 2008.

The Marina prospect comprises a large fault bounded structure with targets at multiple levels. The structures are well defined by 3D seismic.

“Nearby hydrocarbon seeps demonstrate that migrating hydrocarbons are present, supported by seismic AVO anomalies indicative of trapped oil at Marina,” Karoon said in its disclosure in Australia.

Karoon’s wholly owned subsidiary, KEI (Peru Z-38) Sucursal del Peru, owns a 40% operating equity interest in the blocks with Tullow Oil Ltd. holding 35% and Pitkin Petroleum holding the rest.

On Thursday, shares in PXP Energy climbed 11.65% to P10.06 each.

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