PXP Energy Corp., the oil and gas exploration unit of Philex Mining Corp., said Thursday it will drill two appraisal wells in the gas-rich Recto Bank this year along with subsidiary Forum Energy Plc.
“Each of Forum and PXP Energy [the group] is focused on fulfilling its work commitments for 2022 which have been approved by the Philippine government, including the drilling of two appraisal wells over the Sampaguita gas discovery in SC [Service Contract] 72,” PXP Energy said in a disclosure to the stock exchange,
PXP Energy’s work program involves the drilling of two exploratory wells in SC 72 on or before June. SC 72 contains the Sampaguita gas discovery, which has an estimated gas in place of 3.4 trillion cubic feet.
Forum Energy through Forum GSEC 101 Ltd. operates SC 72 or Recto Bank with a 70-percent participating interest.
PXP Energy chairman Manuel Pangilinan, who was previously skeptical of drilling operations in SC 72 in the West Philippine Sea amid territorial dispute with China, said that with the spike in world oil prices, there is a need to secure the Philippines’ own indigenous resources and not rely on foreign suppliers of fuel.
PXP Energy said it would also conduct 3D seismic survey in SC 75 in northwest Palawan.
“Meanwhile, the group shall continue to pursue explorations with respect to its other projects in the Philippines including SC40 and SC74,” PXP Energy said.
The company posted a net loss of P3.14 billion in 2021, wider than the P76.27-million loss in 2020. Core net loss was lower at P32.5 million in 2021, compared to P49.5 billion in 2020.
Consolidated net loss attributable to equity holders of the parent company reached P1.714 billion in 2021, up from P56.1-million loss in 2020 largely as a result of a P1.655-billion provision for impairment of the carrying value (net of the settlement sum) of oil and gas assets related to Peru block Z-38.
The company’s 53.43-percent owned subsidiary Pitkin Petroleum Ltd. and wholly-owned subsidiary Pitkin Petroleum Peru Z-38 SRL signed a deed of settlement and release with KEI (Peru Z-38) Pty Ltd. and its wholly-owned branch KEI Pty Ltd Sucursal del Peru wholly-owned by Karoon Energy Ltd. over Pitkin Peru’s dispute with KEI Peru in Block Z-38 in offshore Peru in September last year.
Under the deed, KEI agreed to pay $9.6 million in cash to Pitkin in full and final settlement of all claims in connection with Block Z-38. KEI paid the settlement sum in October.
Consolidated petroleum revenues surged by 112.2 percent last year to P64.2 million from P30.3 million in 2020 coming from a 75.4 percent rise in average price of Galoc crude sale at $69.58 per barrel compared to $38.18 per barrel in 2020.
The higher prices was offset by lower output amid the decline in field production rate in SC 14C-1 Galoc, with three completed liftings at 631,948 bbls last year compared to 750,506 bbls in 2020.
Consolidated costs and expenses rose 4.1 percent to P102.7 million from P98.7 million in 2020 brought about by higher petroleum production costs in SC 14C-1 Galoc.