Philex Petroleum unit divests stake in Vietnam oil and gas company

A unit of Philex Petroleum Corporation sold all of its stake in a Vietnam oil and gas exploration company to fund new acquisitions and activities on existing assets.

In a disclosure to the Philippine Stock Exchange on Wednesday, Philex Petroleum said Pitkin Petroleum Plc completed on July 16 the sale of all its

interest in Vietnam American Exploration Company LLC, a Delaware company, for a total consideration of approximately P2.1 billion.

"As a result of this transaction, the company will record a gain on sale of approximately P200 million," the disclosure read.

Philex Petroleum said Pitkin intends to use the proceeds, along with existing financial resources, to fund exploration activities on existing assets and to buy new oil and gas exploration assets.

Vietnam American Exploration was a wholly-owned subsidiary of Pitkin, which has a 40-percent participating interest in Block 07/03 in offshore Vietnam.

Philex Petroleum owns 50.28 percent of Pitkin, an international upstream oil and gas company that focuses on tertiary basins and holds a stake in service contract 14C (West Linapacan Block) in the Northwest Palawan Basin.

Recently, the consortium of Pitkin and Philodrill Corp. signed a contract for Area 5 in Northwest Palawan Basin to look for petroleum deposits. — Danessa Rivera/VS, GMA News