Department of Energy (DOE) Approval of the Notice of Surrender of Service Contract (SC) 74

DOE has approved the surrender of SC 74, in which PXP has an operating interest of 70%. According to the company, this will not have a material impact on PXP's 2024 financial statements. While Philodrill is a JV partner with a 25% participation interest. According to Philodrill, they will comply with the DOE directive through the operator of SC 74.​

In an email correspondence the company received today, they were provided with a copy of the DOE letter, which stated that:

"We refer to PXP's letter dated 13 December 2023 informing the Department of Energy (DOE) of the surrender of Service Contract (SC) No. 74. As stated in PXP's letter, no drillable prospects have been identified in the contract area, leading the Joint Venture Consortium - comprised of PXP, The Philodrill Corporation, and PNOC-Exploration Corporation (the "Contractors") - to decide to surrender the service contract.

Based on DOE's review and evaluation, we confirm that the Contractors have complied with their reportorial obligations. However, there remains an outstanding scholarship commitment under the DOE's Energy Iskolar ng Bayan Program. The DOE is currently finalizing the renewal of its Memorandum of Agreement with Palawan State University, the intended beneficiary of scholarship commitment under SC No. 74.

In view thereof, the DOE hereby approves the Contractor's relinquishment of SC No. 74, subject to the settlement of the remaining scholarship commitment in the amount of Fifty-Five Thousand US Dollars ($55,000.00). The Contractors are directed to abandon the contract area and restore all sites that may have been affected by any petroleum operations."