PXP to surge as WPS exploration ban lifted
ShAReS of PXP energy Corp. may climb further as it hit its ceiling price last week, following the lifting of the oil and gas exploration moratorium in the West Philippine Sea last week, analysts said.
The Pangilinan-led firm saw its handling activities in Service shares finish at P7.72 apiece on Friday, Contracts (SCs) 59, 72 and 75. a 49.9-percent or 2.57-point SCs 59 and 72 are operated climb. The surge also improved by the Philippine National Oil its week-on-week results by 45.4 Company-Exploration Corp. and percent. Forum Ltd., respectively, while PXP
Diversified Securities Inc. trader Energy Corp. operates SC 75. Aniceto Pangan attributed the A moratorium on all exploration jump in the corporation’s shares to and drilling activities in the the recent lifting of the exploration West Philippine Sea was issued ban in the West Philippine Sea. under the Aquino administration
The Department of Energy amid the geopolitical tension between (DoE) on Thursday announced the Philippines and China. President Rodrigo Duterte’s decision “With the lifting [of the] moratorium, to lift the moratorium on both countries are now petroleum exploration in the in the position to utilize the vast disputed area. oil and gas resources in the area
The department then issued as a replacement for Malampaya, ‘resume-to-work’ notice to entities expected to deplete by 2027,”
Pangan said in a text message to The Manila Times.
AAA Equities Head of Research Christopher Mangun likewise said the recent lift of the exploration ban prompted PXP’s shares to hit its ceiling price on the last trading day and end as the top stock.
“Investors cheered the recent developments as it also signals progress on the geopolitical concerns with China. This new uptrend may continue higher as more developments come out,” Mangun told The Times.
Both Pangan and Mangun see the stock continuing higher depending on the developments of exploration.
“If all systems go for both parties concerned on the joint exploration, then we’ll see a sustain[ed] positive momentum going forward,” Pangan said.
Mangun, meanwhile, said PXP’s shares might climb higher as “more investors jump on the bandwagon.”
“PXP has always been a speculative play and in turn has seen major volatility at times. A timeline on when they will resume their own exploration operations and test drilling will continue to excite investors,” Mangun added.
The huge plunge in oil revenues widened the net loss of PXP Energy Corp. to P56.3 million in the first semester from P17.9 million in the same period last year.