Extension/Revision of the Terms of Payment for the Ten Percent (10%) Subscription Call

November 3, 1998 PSE CIRCULAR FOR BROKERS NO. 2496-98 October 30, 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/Revision of the Terms of Payment for the Ten Percent (10%) Subscription Call Gentlemen : This is to confirm our earlier telephone advise that the Board of Directors of THE PHILODRILL CORPORATION (the "Company") passed and approved today, 30 October 1998, the following resolution extending/revising the terms of payment for the Ten Percent (10%) subscription call of the Company: " WHEREAS , pursuant to a Board Resolution adopted on 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 requested for, and the Company granted, pursuant to a Board Resolution dated 26 August 1998, an extension of the payment deadline set for said 10% subscription call from 31 August 1998 to 30 October 1998; LLjur " WHEREAS , citing continuing uncertainties in the economic conditions and the stock market, the Company's shareholders have requested for flexible terms of payment of the said 10% subscription call; " WHEREAS , in view of the approaching payment deadline for said 10% subscription call on 30 October 1998 and the clamor from shareholders for more flexible payment terms, it has become imperative for the Board of Directors to address these issues immediately to avoid confusion among the shareholders and/or a possible overhang in the stock market; " NOW, THEREFORE , in view of the foregoing premises, the Board of Directors passed and approved the following resolution: " RESOLVED , as it is hereby resolved, to authorize the acceptance of payments from shareholders, pursuant to the Company's call for payment of Ten Percent (10%) of all outstanding and unpaid 1994 subscriptions, in accordance with the following terms and conditions: "1. Shareholders may pay the ENTIRE 10% subscription call on or before 30 November 1998, without interest charges. "2. Any shareholder who fails to pay the entire 10% subscription call, pertaining to his/her/its outstanding and unpaid 1994 subscription, on or before 30 November 1998 shall be deemed to have elected to pay said 10% subscription call in five (5) equal monthly installments due and payable on 30 November 1998, 29 December 1998, 29 January 1999, 26 February 1999 and 31 March 1999, with an interest charge of Two Percent (2%) per month based on the remaining unpaid portion of the subscription amount due computed as of the day prior to the installment due date." LLpr 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, THE PHILODRILL CORPORATION By: (SGD.) ADRIAN S. ARIAS Corporate Secretary