C01179-2021

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Feb 24, 2021
2. SEC Identification Number
CS200719819
3. BIR Tax Identification No.
006-940-588-000
4. Exact name of issuer as specified in its charter
PXP ENERGY CORPORATION
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
2/F LaunchPad, Reliance cor. Sheridan St., Mandaluyong City Postal Code 1550
8. Issuer's telephone number, including area code
0286311381
9. Former name or former address, if changed since last report
n/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 Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares 1,960,000,000
11. Indicate the item numbers reported herein
9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

PXP Energy CorporationPXP

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

PRESS RELEASE: AUDITED FINANCIAL AND OPERATING HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2020
Background/Description of the Disclosure

• 2020 Core net loss lower at P45.7 million (2019: P79.8 million). Consolidated Net Loss Attributable to Equity Holders of the Parent Company at P56.1 million (2019: P272.1 million). Reported consolidated net loss at P76.3 million (2019: P297.2 million).

Consolidated petroleum revenues 58.3% lower at P30.3 million (2019: P72.5 million) resulting from: (a) 24% lower output following normal decline rate in field production in Service Contract (SC) 14C-1 Galoc on three (3) completed liftings in 2020, totaling 750,506 bbls (2019: 3 liftings, 993,761 bbls); and (b) 40% slump in Galoc crude sale price, due to a worldwide collapse in demand in 2020 caused by the COVID-19 pandemic.

Consolidated costs and expenses 48.2% lower at P98.7 million (2019: P190.6 million) brought about by lower petroleum production costs and depletion in SC 14C-1 Galoc, following the decline in output; while Group general and administrative expenses improved by 38.6% at P64.5 million (2019: P105.1 million), due to a 4.6% decrease in recurring overhead at P63.6 million (2019: P66.7 million) and a significant reduction to non-recurring plug and abandonments costs at P0.9 million (2019: P38.4 million).

Under Other Income/Charges, provision for impairment of assets and loss on write-off was reduced to P6.2 million (2019: P199.1 million) related primarily to the lower-than-expected future returns in SC 14C-1 Galoc following the recent crash in global crude oil prices and the ongoing evaluation of the continuous production of the field.

• On October 16, 2020, PXP received a “Resume-to-Work” notice from the DOE in relation to the Company’s operating interest in SC 75 NW Palawan Block; while the Company’s subsidiary, Forum (GSEC 101) Limited (“Forum”), also received the Resume-to-Work notice from the DOE for its operating interest in SC 72 Recto Bank. These notices were issued by the DOE as a result of the lifting of the force majeure by the DOE for the areas covered by SC 72 and SC 75.

• On August 5, 2020, PXP increased its direct shareholding in FEC Resources Inc. (“FEC”) from 54.99% to 78.39%. This increases PXP’s total economic interest in Forum 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.

• On 14 July 2020, the Peruvian authorities granted the Operator force majeure on Peru Block Z-38 in which Pitkin Petroleum Limited (“Pitkin”) has a 25% interest following the temporary closure of Karoon’s Peru office resulting from the COVID-19 lockdown and quarantine requirements. The force majeure period started on 16 March 2020 and was lifted on 27 November 2020.

• For the time being, Karoon continues with its assessment of the remaining prospectivity of the Block prior to making a decision on whether to enter the fourth exploration period. The decision is required by June 2021. Pitkin is free-carried for a second well under a Farm-in agreement signed with Karoon in 2009.

Outlook
Forum and PXP will take guidance from the Philippine Government with respect to fulfilling its work commitments in SC 72 and SC 75. Meanwhile, the Company, through Pitkin, is fully committed in ensuring the full realisation of its Z-38 block in offshore Peru.
Other Relevant Information

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.

For further information, please contact:

Mark H. Rilles
Finance Controller
PXP Energy Corporation
Telephone: (632) 631 1381
Email: [email protected]
Filed on behalf by:
Name Mark Raymond Rilles
Designation Finance Controller