10% Call on Outstanding 1994 Subscriptions

July 30, 1998 PSE CIRCULAR FOR BROKERS NO. 1785-98 July 29, 1998 DISCLOSURE DEPARTMENT Listings & Disclosure Group Philippine Stock Exchange, Inc. 4/F, PSE Center, Exchange Road Ortigas Center, Pasig City Fax No.: 636-0809 and 637-8811 Attention: Mr . Reynold P . Ong Vice President, Listings & Disclosure Group SUBJECT : 10% Call on Outstanding 1994 Subscriptions Gentlemen : This is to confirm our earlier telephone advise that at the Regular Meeting of the Board of Directors of THE PHILODRILL CORPORATION (the "Company") held today, 29 July 1998, starting from 1:30 p.m., the Board passed and approved the following resolution calling for a 10% payment on all outstanding 1994 subscriptions to the capital stock of the Company: "RESOLVED, as it is hereby resolved, to authorize the Company to issue a call for payment of all unpaid and outstanding 1994 subscriptions to the extent of TEN PERCENT (10%) of the subscription amount, payable on or before 31 August 1998:" cdll The above 10% subscription call pertains to the 4:11 stock rights offering undertaken by the Company in 1994 involving P409,695,1 35.00 worth of shares. This formal written advise on the foregoing matter is submitted in compliance with the rules and regulations of the Philippine Stock Exchange. Very truly yours, (SGD.) ADRIAN S. ARIAS Corporate Secretary