Acquisition/Disposition of Shares of Another Corporation

Source Company Press Release
Company PXP Energy Corporation
Tags Corporate: Overview/Strategy, Country: Philippines, M&A: Corporate Deal, Deals, Upstream: Upstream News
Date August 03, 2020

1. Date of Report (Date of earliest event reported)Aug 6, 2020

2. SEC Identification NumberCS200719819

3. BIR Tax Identification No.006-940-588-000

4. Exact name of issuer as specified in its charterPXP ENERGY CORPORATION

5. Province, country or other jurisdiction of incorporationPhilippines

6. Industry Classification Code(SEC Use Only)

7. Address of principal office2/F LaunchPad, Reliance cor. Sheridan St., Mandaluyong CityPostal Code1550

8. Issuer's telephone number, including area code0286311381

9. Former name or former address, if changed since last reportn/a

10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA

Title of Each Class: Common Shares

Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding: 1,960,000,000

11. Indicate the item numbers reported herein

Subject of the Disclosure

Increase of Shareholdings in FEC Resources, Inc.

Background/Description of the Disclosure

PXP Energy Corporation (“PXP” or “the Company”) wishes to announce that it has increased its direct shareholding in FEC Resources Inc. (“FEC”) from 54.99% to 78.39%. This increases PXP’s total economic interest in Forum Energy Limited (“FEL”) from 76.07% to 77.66%. The additional interest was acquired through a subscription to 449,999,986 new ordinary shares of FEC through a stock rights offering. The new shares were issued at approximately US$0.00225 per share for a total consideration of US$1,012,499.97.

FEC is incorporated under the laws of Alberta, Canada. It primarily acts as an investment holding company. Its principal asset is a 6.8% stake in FEL. FEL is a UK Incorporated oiI and gas exploration and production company with a focus in the Philippines. It’s principal asset is a 70% interest in Service Contract 72, an 8,800-square kilometre (‘Km2’) offshore petroleum licence situated west of Palawan Island in the West Philippine Sea.

The acquisition of additional shares in FEC did not result in a change in the board of FEC or FEL.

Date of Approval by Board of Directors: July 30, 2020

Rationale for the transaction including the benefits which are expected to be accrued to the Issuer as a result of the transaction

Increase its direct shareholding in FEC Resources Inc. (“FEC”) from 54.99% to 78.39%.

Details of the acquisition or disposition

Date August 3, 2020


Through Participation in FEC's Stock Rights Offering

Description of the company to be acquired or sold

FEC Resources Inc., is incorporated under the laws of Alberta, Canada. It primarily acts as an investment holding company. Its principal asset is a 6.8% stake in FEL.

The terms and conditions of the transaction

Number of shares to be acquired or disposed: 449,999,986

Percentage to the total outstanding shares of the company subject of the transaction: from 54.99% to 78.39%.

Price per share: $0.00225

Nature and amount of consideration given or received


Principle followed in determining the amount of consideration

Based on the price of FEC shares in the stock rights offering of $0.00225/share.

Terms of payment


Conditions precedent to closing of the transaction, if any


Any other salient terms


Identity of the person(s) from whom the shares were acquired or to whom they were sold

Name: n/a

Nature of any material relationship with the Issuer, their directors/ officers, or any of their affiliates: n/a

Effect(s) on the business, financial condition and operations of the Issuer, if any

FEC intends to use the proceeds from the Rights Offering for general working capital purposes primarily the payment of administrative expenses and to provide the Company with funds for investment opportunities including participation, in any fund raising of Forum Energy Limited in order to maintain its percentage ownership interest in that company.

Other Relevant Information

Amended to edit the exact number of shares issued by issuer and exact amount up to last centavo.

About PXP Energy Corporation

PXP is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange. The Company directly and indirectly owns oil and gas exploration and production assets located in the Philippines, and indirectly owns an exploration asset located in offshore Peru.

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