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Philex oil unit swings to P1-b loss

Philex Petroleum Corp., a unit of Philex Mining Corp., said Friday it incurred a net loss of P1.086 billion in 2012, a turnaround from a net income of P537.53 million in 2011. Philex Petroleum said in a disclosure to the stock exchange it swung to a net loss last year, partly because of a P388.63-million writedown of the investment made in Forum Energy Plc’s Service Contract 40 in Cebu. Philex Petroleum has direct and indirect interest of 60.49 percent in SC 40 which covers the Libertad gas field, through Forum Energy plc of the UK. The Libertad gas field produced 72.5 million cubic feet of gas gross representing net revenues of $88,000. Forum Energy commissioned last year a resource assessment study undertaken by Petroleum Geo-Services Asia Pacific Pte Ltd., which downgraded previously identified leads and prospects within SC40. Forum Energy had written down the carrying value of the investment in SC40 by $25.4 million to $3.25 million. Philex Petroleum’s net income also declined due to a writedown of P578.25 million of the assets in Brixton Energy & Mining Corp., a wholly-owned subsidiary which holds coal operating contract 130 in Zamboanga Sibugay province. Brixton suspended its underground  mining operation in the wake of declining coal prices and pending an ongoing detailed review of the coal mine viability. Philex Petroleum, said in a separate disclosure, it sold its 28,226,551 shares of stock of PetroEnergy Resources Corp. to RCBC Securities Inc. for its clients, at a slight discount to the quoted market price.
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