FEC RESOURCES INC. (PINK: FECOF) (“FEC” or the “Company”) provides the following response that PXP Energy Corporation (“PXP”) provided to the Philippine Stock Exchange in response to the recent stock trading activity.
“We reply to your letter dated 16th October 2020 with Ref. No.: OSD-20-0406, received by PXP Corporation (the “Company” or “PXP”) on the same date, noting an unusual price movement in the trading of PXP shares at 09:30:00 AM today of which the share price of PXP increased from PhP5.15 to PhP7.72 per share.
The Company does not possess any undisclosed information that may have influenced the price of the Company’s shares. The Company is of the opinion that such price movement could have been influenced by the following:
1. The press release published by the Philippine Department of Energy (“DOE”) at its website https://www.doe.gov.ph/press-releases/pres-duterte-okays-lifting-oil-exploration-moratorium-wps?ckattempt=1 on 15 October 2020 (the “DOE Press Release”) stating that “President Rodrigo Duterte has approved the recommendation of the DOE to lift the suspension of petroleum activities and the resumption of petroleum exploration in the West Philippine Sea (WPS);” and
2. The reference in the DOE Press Release to “the ongoing negotiations between the Philippines and China, and Forum Ltd. And the China National Offshore Corp. (“CNOOC”).
In relation to item (1) above, PXP just received today the “Resume-to-Work” notice from the DOE in relation to PXP’s operating interest in Service Contract 72 (“SC 72”); while PXP’s subsidiary, Forum Energy Limited (“Forum”), also received today the Resume-to-Work notice from the DOE for its operating interest in SC 75.
In relation to item (2) above, PXP confirms that, as referred to in the DOE Press Release, there are ongoing negotiations between Forum (GSEC 101) Ltd, a subsidiary of Forum, and CNOOC relating to the implementation of the Memorandum of Understanding on Cooperation on Oil and Gas Development between the Government of the Republic of the Philippines and the Government of the People’s Republic of China dated 20 November 2018, but the parties are yet to agree on any disclosable definitive agreement. Hence, to date there are no disclosable information in respect of such ongoing negotiations, including the existence of such ongoing negotiations itself.
We trust that you will find the foregoing response in order. We shall immediately inform the Exchange of any materials developments related to any of the foregoing in due course.
Enclosed is a statement executed under oath by the undersigned as President of the Company.”
The above noted response can be found at: Reply to Inquiry on: Unusual Price Movement
On behalf of the Board of,
FEC Resources Inc.
For more information please e-mail info@FECResources.com or visit the FEC Resources website at www.FECResources.com