Extension of Payment Deadline for 10% Subscription Call

August 27, 1998 PSE CIRCULAR FOR BROKERS NO. 1987-98 August 26, 1998 DISCLOSURE DEPARTMENT Listings & Disclosure Group Philippine Stock Exchange, Inc. Philippine Stock Exchange Centre Exchange Road, Ortigas Center, Pasig City Fax No. 636-0809 and 637-8811 Attention: Mr . Reynold P . Ong Vice President, Listings & Disclosure Group SUBJECT : Extension of Payment Deadline for 10% Subscription Call 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, 26 August 1998, starting from 1:30 p.m., the Board passed and approved the following resolutions extending the deadline for payment of the Ten Percent (10%) subscription call from 31 August 1998 to 30 October 1998, as follows: "WHEREAS, pursuant to a Board Resolution dated 29 July 1998, the Company issued 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; "Whereas, citing the prevailing economic conditions and the current state of the local stock market, shareholders of the Company have requested for an extension of the payment deadline set for the said 10% subscription call; "NOW, THEREFORE, in view of the foregoing premises, the Board of Directors, after due deliberation and upon motion duly made and seconded, passed and approved the following resolutions: "RESOLVED, as it is hereby resolved, to authorize the acceptance of payments made by shareholders pursuant to the Company's call for payment of all outstanding and unpaid 1994 subscriptions, to the extent of Ten Percent (10%) of the subscription amount, up to and until 30 October 1998 without imposition of penalty and/or interest charges thereon." 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