Tuesday, December 3, 2013

Trans-Asia acquiring stake in Basic Energy’s geothermal projects


Business World Online
Posted on December 03, 2013 10:11:10 PM


TRANS-ASIA Oil and Energy Corp., a unit of investment firm Phinma Corp., is taking a stake in a Batangas geothermal exploration project of Basic Energy Corp., both listed energy companies said in separate disclosures yesterday.

  Under a memorandum agreement (MoA) signed last Dec. 2, “Trans-Asia shall acquire from Basic 10% participating interest in the Mabini Geothermal Service Contract (GSC),” the disclosures read, adding that this “interest may be increased to up to 40%, at the option of Trans-Asia.”

Both parties will execute a farm-in agreement once Trans-Asia will have decided on a definitive interest, “depending on the results of the onshore gravity program...” Basic said in its disclosure.

The Mabini GSC requires drilling of one exploratory well by July 2015, Basic’s disclosure added.

Basic said in the third-quarter report it released last Nov. 11 that initial assessment of the steam resource in the Mabini project area shows capacity to generate “about 20 megawatts,” and that electricity from the prospective plant to be built there will be sold to local cooperatives and the Wholesale Electricity Stock Market.

The same MoA gives Trans-Asia “the option to acquire up to 60% interest” in Basic’s other geothermal service contracts in Mariveles, Bataan; East Mankayan, Benguet; West Bulusan, Sorsogon; and Mt. Iriga in Camarines Sur.

“We welcome Trans-Asia’s intention to potentially become our major partner in the development of Basic’s various GSCs,” a separate statement quoted Basic Energy Chief Executive Officer Oscar L. de Venecia, Jr. as saying.

“This will hopefully result in significant income streams for both our companies and other partners who may join our consortium, as we go through the development of the Mabini geothermal steam fields and then to power generation and supply.”

Basic, which is also involved in oil exploration in Mindoro and Sulu Sea, saw its bottom line swing to a P9.31-million net loss as of September from a P187.66-million net income in the same nine months last year, as revenues fell 91.3% to P20.23 million from P232.48 million, while costs and expenses dropped by a smaller 8.4% to P29.5 million from P32.25 million.

Trans-Asia, which is engaged in oil, gas and geothermal resource development, grew consolidated net income by 36.3% to P474.1 million in the nine months to September from P347.838 million the past year. Revenues doubled to P1.575 billion from P779.350 million, while costs and expenses tripled to P849.769 million from P274.495 million.

Yesterday, shares of Trans-Asia lost five centavos or 4.42% to close P1.41 apiece, while those of Basic ended unchanged at 24.5 centavos. -- LCSM   source

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