A Philippine official denied Wednesday a report that the government has lifted a moratorium on energy exploration in the South China Sea, after shares in upstream oil and gas (O&G) company PXP Energy Corp jumped 50%.

News outlet Vera Files reported, citing an unnamed source, that the moratorium on O&G exploration in Reed Bank in the South China Sea has been lifted. The move would allow PXP unit Forum Energy Ltd, which holds Service Contract 72 in the Reed Bank, to contract survey ships and start drilling in the area, the report said.

Asked for comment, Energy Undersecretary Alessandro Sales however said that the moratorium hasn’t been lifted based on his knowledge. 

PXP hit the Philippine Stock Exchange’s upper threshold to close at 4.50 pesos (36 sen) a share, the highest in nearly a year. The company told the bourse on Wednesday that it wasn’t aware of any information that could have influenced its share price.

Forum Energy’s Service Contract 72 covers the Sampaguita gas discovery, which has contingent resources of 2.6 trillion cubic feet of gas. It was previously in talks to partner with China National Offshore Oil Corp for potential exploration.

The Southeast Asian nation, which imports almost all its fuel requirements, has been trying to start energy exploration in its waters as a key local gas field nears depletion. However, tensions with China had prompted the Philippines in recent years to suspend exploration activities in the area.

Defence Secretary Gilberto Teodoro early this year said the government won’t allow any joint exploration that doesn’t recognise the nation’s right to exclusively exploit resources.

Shares of two other Philippine explorers also rose. Atok-Big Wedge Co, which has an indirect stake in Forum Energy, surged 37%. Apex Mining Co, Forum Energy’s partner in the service contract with a 30% stake, rose nearly 3%.

  - Bloomberg