SHARES OF PXP Energy Corp. jumped 19.01% or P0.54 on Thursday, closing at P3.38, following the Philippine government’s award of new petroleum service contracts (SC) covering the Sulu Sea and Northwest Palawan.
Trading volume reached 33.8 million shares, with a total value of P116.57 million, signaling strong investor interest. The stock’s intraday range was P3.07 to P3.65, approaching its 52-week high of P3.65.
The rally comes despite PXP posting a core net loss of P21.1 million for the six months ended June, mainly due to softer crude prices, lower production from its Galoc operations, and higher petroleum costs.
The company said it will ramp up exploration in Philippine petroleum basins, working with consortium partners Triangle Energy (Global) Ltd., Sunda Energy Plc., and The Philodrill Corp. on SC 80 and SC 81 in the Southwest Sulu Sea, and SC 86 in Northwest Palawan, where PXP’s subsidiary, Forum Energy Philippines Corp., is a participant.
“These new projects expand our exploration presence in the Sulu Sea, an area with a proven exploration history and promising untapped potential, and strengthen PXP’s presence in the highly prolific Northwest Palawan basin,” PXP Chairman Manuel V. Pangilinan said in a media release.
SC 80 spans 780,000 hectares, with a potential of around 470 billion cubic feet of gas and 5.4 million barrels of condensate, PXP said, citing a report by former operator Jadestone Energy.
SC 81 covers 532,083 hectares and hosts wells with oil and gas shows, confirming an active petroleum system.
Early exploration work will focus on technical evaluation and de-risking to identify viable drilling targets.
Both contracts will be co-managed by the Department of Energy and the Bangsamoro Autonomous Region in Muslim Mindanao through its Ministry of Environment, Natural Resources and Energy.
SC 86 covers 132,000 hectares in the Malajon area, adjacent to the Galoc Field.
The new contract replaces SC 6A covering the Octon Block and expands the area previously under a different contract.
The joint venture exploring SC 86 includes Philodrill, Anglo Philippine Holdings Corp., and PXP & Forum, with initial work focusing on advanced subsurface studies.
“We remain fully committed to supporting the Philippine government’s goal of achieving energy self-sufficiency through the responsible development of the country’s indigenous resources,” Mr. Pangilinan said. — Sheldeen Joy Talavera
