From the annual report I've taken excerpts of interesting things.
2008, FEP finalized farm-out of a 30% interest in the license to a local partner Monte Oro Resources & Energy, Inc. (Monte Oro) in which FEP benefited from an immediate cash payment of $1.7million, securing Monte Oro’s involvement and thereby qualifying the Joint Venture for the Filipino Participation Incentive Allowance (FPIA) which entitles the Company to 7.5% of gross revenues, prior to sharing revenues with the government.
That 7.5% of gross revenues prior to sharing revenues with the govt is very interesting and I wonder if it's still grandfathered in. I don't see why not. It definitely gives fecof some added bonus when this is up and drilling.
I want to add for those investors who came here after the Chinese harassment of sc72 , that when this was going to be drilled with a JV, fecofs part of the expense was going to come thru a line of credit from Philex/pxp. I expect the same this time. Considering that they now have a much smaller 6.8% thanks to pxp , their line of credit will be much much smaller for their share of the drilling expenses.
Another good/interesting excerpt is:
Our accounts show income for the year ended December, 2017 of 1,803,036 or $0.00 per share, versus a loss of $(249,569) for the same period in 2016. The difference was because of the $1,965,000 unrealized gain on the reclassification of Forum Energy shares as a result of our loss of significant influence. Prior to the dilution, we accounted for our investment in Forum Energy using the equity method; following the loss of significant influence this investment is now classified as available for sale and is measured at fair value.
The article above explains how we use to use the equity method and now after the "loss of significant influence" this is now measured at fair value ..... which is tricky since fep doesn't trade regularly anymore as a private company. Any transactions though in the future by someone like Atok big wedge or apx selling some interest for cash would help in that manner.
This stock for its low price certainly does not come without its own risk this the huge discount to pxp shares. I for one am hopeful that risk is justified by its huge upside. Nonetheless I'd buy some pxp and apx to be involved for the long haul here to compliment the fecof shares just in case fecof takes an early buyout of 15 cents or something.
