Business World Online
Posted on September 23, 2011 06:32:36 PM
BASIC ENERGY Corp. is preparing to transfer majority control over its Mabini geothermal energy project to Geoenergy, Inc. in exchange for capital to develop the potential steam field, a disclosure to the local bourse on Friday showed.
"Basic Energy and Geoenergy, Inc., an affiliate of New World Energy Ltd. of Australia, have signed a heads of agreement to jointly progress Basic’s Mabini geothermal energy project," Basic Energy, which has a stake in the separate Galoc oil field project, said in the disclosure.
"After the execution of the heads of agreement, a farm-in agreement will be prepared and finalized, pursuant to which Geoenergy shall have the right to acquire up to a 70% participating interest in the project," said Basic Energy, which acquired rights over the site from the government in 2008.
Geoenergy, whose parent firm is described as undertaking exploration projects in Australia, will then fund "100% of the exploration costs up to the completion of drilling one geothermal exploration well".
The prospect is located in the Calumpan Peninsula in Mabini, Batangas and is projected to yield 20 megawatts of energy.
Shares of Basic Energy closed at P0.25, down 7.4% from its previous close of P0.27 a piece. -- ENJD
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