{"url_path":"/sec/fecof/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/849997/0001477932-26-003204-index.html","accession_number":"0001477932-26-003204","cik":"0000849997","ticker":"FECOF","issuer_name":"FEC Resources Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/849997/0001477932-26-003204-index.html","primary_entity_key":"0000849997","primary_entity_name":"FEC Resources Inc."},"word_count":649,"has_tables":true,"body_markdown":"**ITEM 7.  MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**\n\n \n\n**A.  Major Shareholders**\n\n \n\nWe are a publicly-owned corporation, the shares of which are owned by Canadian residents, U.S. residents, and residents of other countries.  We are controlled by PXP due to the fact that, as indicated in the table below, it directly owns 81.25% of our outstanding voting securities and thus controls the outcome of all matters decided stockholder votes. The following table provides the names and share ownership of those parties that have ownership of 5% or more of each class of our voting securities as of March 4, 2026, according to the information available to us.\n\n \n\nName\n\n \n\nNumber of Shares Owned\n\n \n\n \n\nPercent of Class\n\n \n\nPXP Energy Corporation *\n\n \n\n \n806,563,711\n \n\n \n\n \n81.25\n \n\nAsian Coast International\n\n \n\n \n62,740,000\n \n\n \n\n \n6.32\n \n\n \n\n* Prior to July 31, 2025, PXP owned 674,999,986 common shares and on July 31, 2025 received an additional 131,563,725 commons shares for settlement of the PXP Loan outstanding on that date. No other changes in the ownership of our shares by PXP has occurred during the past three (3) years prior to that.\n\n \n\nThere are no arrangements, known to us, the effect of which may at a subsequent date result in a change in our control other than as noted in **Item 5 Operating and Financial Review and Prospects**.\n\n \n\nAs at March 4, 2026, management is not aware of any person holding a greater than 5% registered interest in any class of our voting securities other than as set forth above.  The above listed organizations and individuals have no special or separate voting rights than those rights held by our shareholders.\n\n \n\nOn March 3, 2026, the shareholders’ list showed 592 registered shareholders and 992,646,096 shares outstanding.  The number of shares held by U.S. residents was 48,759,820 representing 4.91% of the total issued and outstanding shares.  The total number of U.S. resident registered shareholders was 523.\n\n \n\n**B.  Related Party Transactions**\n\n \n\nOn October 31, 2023 and November 29, 2023, we advanced $68,000 and $136,000, respectively, to FEL representing 6.8% of a $3,000,000 financing being undertaken by FEL, bringing the total advances by the Company to $627,020.  \n\n \n\nOn December 21, 2023, $626,820 of advances made to FEL by us were converted to shares in FEL at a price of $0.30 per share.  The $626,820 conversion into FEL shares represented 6.8% of $9,217,939 of debt settled by FEL.  The remaining $200 of advances made to FEL was assumed by PXP.\n\n \n\nDuring the year ended December 31, 2025, general and administrative expenses included key management personnel compensation totaling $48,000 (2024: $48,000; 2023: 48,000).\n\n \n\nOn March 10, 2022, we announced that we agreed to fund an additional cash call for pre-drilling costs received from FEL in the amount of $198,620.  The advance to FEL was via non-interest bearing loans.  In order to be able to fund the $198,620, the Company accepted a loan from PXP for the same amount (“PXP Loan”). \n\n \n\nThe PXP Loan bears interest of LIBOR plus 3.5% and both interest and principal are repayable on the earlier of: (a) August 31, 2025, (b) any equity issuance by us, (c) any sale of FEL shares by us, or (d) any third party borrowing by us.  We also received an additional $260,950 for working capital from PXP during the year ended December 31, 2025 (2024 - $155,286; 2023 - $356,500 under the same terms and conditions as the PXP Loan.  As at December 31, 2025, the outstanding PXP Loan balance was $40,238 (2024 - $895,637), which included accrued interest of $248 (2024 - $105,431; 2023 - $42,235).  Total interest expense amounted to $41,422 for the year ended December 31, 2025 (2024 – 62,196; 2023 – 32,593).  On July 31, 2025, the Company issued 131,563,725 in settlement of the PXP Loan outstanding on that date comprised of $1,011,156 principal and $146,605 in interest for a total of $1,157,761.\n\n \n\n* Note Item 7.C not required for this Annual Report.\n\n \n\n \n\n35\n\n*Table of Contents*"}