ACEN injects P17.4 million into ENEX

Renewable energy firm ACEN Corp. has poured in P17.4 million in fresh cash to its listed oil and gas arm ENEX Energy Corp. to help fund the company’s day-to-day operations.

In separate stock reports on Monday, both companies confirmed the execution of a subscription contract with ACEN’s purchase of 17.4 million non-voting preferred shares, priced at P1.00 per share, for an “aggregate subscription price of P17,400,000.00.”

“The Subscription Price will be used to fund the operational requirements of ENEX,” the filing read.

The share subscription follows ENEX’s earlier approval to issue or privately place up to 300 million preferred shares, which was cleared by its board on 14 March 2024, and later approved by stockholders on 25 April 2024.

The newly issued shares will come from ENEX’s unissued authorized capital stock and represent 1.3 percent of the company’s total outstanding shares, the disclosure showed.

ENEX is a listed firm engaged in oil and gas exploration and production both locally and internationally, while ACEN is its principal stockholder.

In November, ENEX Energy Corp. decided to stop its 1,100-megawatt Batangas Clean Energy (BCE) project after failing to secure an offtake contract and a third investor.

The company said the move was “driven primarily by the difficulty in securing an offtake contract to ensure the BCE project’s viability, coupled with challenges in securing a third investor due to uncertainties surrounding the project’s offtake arrangements.” It added that the decision aligns with the clean pivot of its parent firm.

ENEX still holds upstream interests, including a 75-percent stake in the Cinco oil and gas prospect under Petroleum Service Contract 55 in offshore West Palawan, where Pryce Gases owns 25 percent. The Cinco prospect is estimated to contain 1.3 to 2.4 trillion cubic feet of gas and 45 million barrels of oil.

Meanwhile, ACEN, which operates in the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the United States, is working to transition its generation portfolio to 100 percent renewable energy and achieve Net Zero greenhouse gas emissions by 2050.