A significant financial restructuring is underway for Forum Exploration, Inc. (FEI), a key component of PXP Energy Corp.’s oil and gas ventures. The company will convert a substantial 561 million Philippine pesos in debt into new equity, fundamentally altering its ownership structure and bolstering its financial foundation.
This conversion will manifest as 561 million new common shares, each valued at one peso, issued directly to Forum Energy Philippines Corp. (FEPCO). The move is strategically designed to alleviate FEI’s outstanding financial obligations and fortify its overall capital position, paving the way for future growth and investment.
The intricate corporate relationship reveals that FEI operates as an indirect subsidiary of PXP Energy, channeled through a 98.08% stake in Forum Energy Ltd., which in turn fully owns FEPCO. This complex structure highlights the interconnectedness of these energy firms and the strategic importance of FEI within the larger portfolio.
Upon completion of the share conversion, FEPCO’s ownership in FEI will dramatically increase from approximately 66.67% to a commanding 91.65% of all issued and outstanding shares. This substantial increase signifies a deepening commitment to FEI and its core assets.
At the heart of FEI’s holdings lies Service Contract (SC) No. 40, a crucial asset located in Northern Cebu. This block, known as the North Cebu Block, occupies a prime position within the Visayan Basin, encompassing the northern reaches of Cebu Island and extending into the surrounding offshore areas of the Central Tañon Strait and Visayan Sea.
PXP Energy is actively exploring avenues to unlock the full potential of SC 40, including seeking potential partnerships through “farm-in” arrangements. These arrangements would involve bringing in additional investors and expertise, contingent upon finalizing favorable commercial terms and securing necessary funding.
Despite these strategic moves, PXP Energy recently reported a widened core net loss of 50.2 million pesos in 2025, a rise from the 33.3 million pesos loss recorded the previous year. This downturn was attributed to reduced production from the Galoc Field, declining crude oil prices, and increased financial and foreign exchange costs.
The impact of lower crude prices was also reflected in consolidated petroleum revenues, which decreased by 16.9% to 49.8 million pesos, down from 67 million pesos. These financial headwinds underscore the volatile nature of the oil and gas industry and the challenges faced by exploration companies.
Despite the reported losses, investor confidence in PXP Energy appears resilient. On the local stock exchange, shares in the company experienced a notable increase of 3.81%, closing at 3 pesos per share, suggesting a belief in the long-term prospects of the company and its strategic initiatives.
