PXP Energy Corporation said one of its subsidiaries is converting millions of dollars in internal debt into shares, a move aimed at cleaning up its books and increasing ownership in a Cebu-based energy project.

In a disclosure on Tuesday, the company said Forum Exploration, Inc. (FEI) approved the issuance of 561 million new shares to convert about USD10.2 million (roughly PHP 561 million) in advances from Forum Energy Philippines Corporation (FEPCO) into equity.

The transaction, still subject to documentation and regulatory filings, effectively turns money previously owed into ownership.

“The conversion is intended to strengthen FEI’s balance sheet and improve its capital position by reducing outstanding obligations,” the company said.

Once completed, FEPCO’s stake in FEI will rise significantly—from 66.67% to around 91.65%.

FEI operates Service Contract No. 40 in Northern Cebu, an area being explored for oil and gas resources. It is part of PXP’s broader upstream portfolio through Forum Energy Limited.

No timeline was given for when the share issuance will be finalized.

Does converting debt into ownership signal stronger confidence in Cebu exploration prospects, or simply a financial clean-up?

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