Update from PHINMA Petroleum on Service Contract 6B

PHINMA Petroleum and Geothermal Inc. (PPG), a subsidiary of PHINMA Energy Corp. (PSE: PHEN), relinquished its 14.063% participating interest in SC 6 Block B, approval of which was granted by the Department of Energy on October 30, 2018.

PPG believes that the remaining prospects in the block are either uneconomic or high risk and, therefore, do not warrant further investments.

However, PPG retained its 2.475% carried interest in the block (a non-paying interest comparable to a royalty that shares in any production revenues) to ensure that the company would still benefit in the event of any commercial oil production in the area.