Corporate News

P300M earmarked for 2014 ventures

Posted on November 29, 2013

BASIC ENERGY Corp. has earmarked some P300 million for projects next year, the listed firm said in a statement yesterday.

Basic Energy said its board of directors yesterday “approved an aggressive P300-million 2014 budget that would fund significant projects of the company in the oil and gas and geothermal energy fields.”

The firm said the investment will go to its oil project in Indonesia, gas project in Mindoro and several geothermal energy exploration projects in Luzon.

The company -- through 70% owned Grandway Group Ltd. and its operating arm in Indonesia, PT Basic Energi Solusi -- will invest “at least P100 million to complete a 10-well redevelopment drilling in Central Java.” The objective of the redevelopment activity, which started this year, is to revive the oil wells. Basic Energy said it has so far spent some P46 million for the first two wells.

At the same time, the company has allocated P20-million for its 3% share in the drilling of a gas prospect called Progreso within Service Contract (SC) 53 located onshore Mindoro province.

The balance will be spent on its geothermal concession areas in Batangas, Bataan, Benguet and Camarines Sur, the firm said.

Basic Energy shares gained 2.67% to end 23.1 centavos yesterday. -- Claire-Ann Marie C. Feliciano