Corporate News

PetroEnergy looking for other geothermal sites

Posted on April 20, 2015

FOLLOWING the successful operations of its first energy venture, listed firm PetroEnergy Resources Corp. (PERC) is now setting its sights on other sites that can support more geothermal energy projects.

“We are looking at other areas in Luzon for other geothermal projects,” PERC Vice-President Francisco G. Delfin, Jr. said during a plant tour on Wednesday last week.

“Why Luzon? Because the power market is still here. There’s a huge potential here,” Mr. Delfin added.

The official said studies and internal discussions on the next project are ongoing but noted that “everything is very preliminary.”

“But initial exploration activities (for a new geothermal project) can start as early as next year,” Mr. Delfin said.

He said the company will likely take in a partner for its next energy venture.

“It’s always our strategy to address the risks by spreading them.

Since this is very capital intensive, it’s good to spread out the capital requirements,” Mr. Delfin said. “We’re going to, most likely, take in partners for the project.”

PERC, through 65%-owned Maibarara Geothermal, Inc. (MGI), owns and operates a 20-MW geothermal plant in Sto. Tomas, Batangas.

MGI is also in the process of expanding the power plant by another 10 MW, which would entail an investment of up to P1.3 billion.

“We already drilled two wells last year and we started testing earlier this year,” Mr. Delfin told reporters during the site visit last week.

The official said once all other preparations for plant construction is in place, the company will proceed with the actual groundwork.

“For the expansion, we are targeting July 2017 as the start of operations,” Mr. Delfin, who also sits as MGI president, said.

In another development, PERC on Friday set a final price for its planned P600-million stock rights offering (SRO) that will be used to fund project expansions.

The Philippine Stock Exchange said in a notice that PERC has set a final offer price of P4.38 per share for the fund-raising activity that will involve 136,912,110 common shares of the company.

Shares of the company closed at P5.50 apiece on Friday last week, down 30 centavos or 5.17% from P5.80 apiece on Thursday.

The final term sheet attached to the notice showed that the offer period will run from May 11 to 15, with an expected listing schedule on June 5.

RCBC Capital Corp. has been tapped as the transaction’s lead underwriter.

PERC’s board of directors in December last year approved the conduct of an SRO to support the expansions of the Etame project and Maibarara plant; as well as the completion of the Nabas wind farm. -- Claire-Ann Marie C. Feliciano