Corporate News

Basic Energy, Trans-Asia tap drilling contractor

Posted on March 31, 2016

BASIC ENERGY Corp. and Trans-Asia Oil and Energy Development Corp. have approved the drilling program for the first exploratory well under the consortiumís service contract in Mabini, Batangas.

Publicly listed Basic Energy told the stock exchange yesterday that the program seeks to confirm the existence of a geothermal resource in the designated drill site at Barangay San Teodoro.

The consortium on March 30 awarded the drilling contract to Diamond Drilling Corporation of the Philippines (DDCP). The companies have also submitted a notice of intent to drill to the Department of Energy, Basic Energy said.

ďUnder the agreement for drilling services with DDCP, the contractor shall provide drilling and coring services for an exploratory well with a minimum depth of 1,500 meters and may descend deeper, if technically justifiable, to be completed within ninety (90) days from commencement of drilling works,Ē Basic Energy said.

Mabini geothermal service contract number 8, located in Calumpan Peninsula, covers 3,841 hectares. The area is projected to yield a power capacity around 20 megawatts (MW) and 60 MW based on pre-feasibility study.

Basic Energy, the operator of the service contract, has a 75% stake in the project. Trans-Asiaís equity participation is 25%.

Basic Energy shares closed unchanged yesterday at P0.255. -- † Victor V. Saulon