FEC RESOURCES INC. (OTC PINK: FECOF) ("FEC") wishes to advise shareholders that it has noted the following announcement made by PXP Energy Corporation (“PXP”). As a result of the transactions referred to in the PXP announcement, FEC’s interest in Forum Energy Limited (“FEL”) has been diluted to approximately 8%.
It should be noted that in June 2015 FEL was delisted from the London Stock Exchange and changed its constitution from being a public company to being a private company. As a consequence, FEC has no preemptive rights to participate in any new share issue and new shares can be issued by FEL at the discretion of its directors.
"23rd March 2017
PHILIPPINE STOCK EXCHANGE
3/F Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue,
Attention: MR. JOSE VALERIANO B. ZUNO III
Department OIC Head, Disclosure
Subject: Increase of Shareholdings in Forum Energy Limited
PXP Energy Corporation (“PXP” or “the Company”) wishes to announce that it has increased its direct shareholding in Forum Energy Limited (“Forum”) from 48.8% to 69.5%. This increases PXP’s total direct and indirect interest in Forum from 67.5% to 77.5%. The additional interest was acquired through a subscription to 39,350,920 new ordinary shares of Forum. The new shares were issued at approximately US$0.30 per share for a total consideration of US$ 11.805 million which was funded through the conversion into equity of a portion of the Company’s $18.3 million loan to a subsidiary of Forum. Further, Tidemark Holdings Ltd. subscribed to 6,666,667 shares of Forum for the amount of $2 million, paid for in cash. As a result of these transactions, Tidemark’s holdings in Forum decreased from 27.1% to 20%.
Forum is a UK Incorporated oiI and gas exploration and production company with a focus in the Philippines. Forum’s principal asset is a 70% interest in Service Contract 72 ‘SC72’ 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 Forum did not result in a change in the board of Forum.
Very truly yours,
Mark H. Rilles
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
PXP Energy Corporation
Telephone: (632) 631 1381
On behalf of the Board of,
FEC Resources, Inc.
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any natural resources that may be located, variations in the market price of any natural resource products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce natural resources from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company’s Annual Report on Form 20-F for the year ended December 31, 2011 and its most recent quarterly reports filed with the United States Securities Exchange Commission (the “SEC”), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and its United States public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials.
For more information please contact (403) 290-1676 e-mail info@FECResources.com or visit the FEC Resources website at www.FECResources.com