October 29, 2015
Basic Energy Corporation has
received the green light from the Department of Energy for its farm-in
agreement with Trans-Asia Oil and Energy Development Corporation to jointly
develop Basic Energy’s geothermal service contract in Mabini, Batangas, the
company said in a disclosure to the Philippine Stock Exchange.
The approved arrangement calls for a
75-25 equity and project cost participation between Basic Energy and
Trans-Asia. Under the terms of the agreement, Trans-Asia will shoulder
25-percent undivided participating interest in the rights, interests,
privileges, duties and obligations in and under Geothermal Service Contract No.
8.
Trans-Asia decided to share in the
cost of the first exploration well committed under sub-phase 3 of the
geothermal service contract after undertaking due diligence on the project,
including geophysical work. This validated previous prospective estimates that
the project could generate between 20 MW and 60 MW of energy.
Basic Energy, as the operator of the
service contract, plans to drill the first well by the second quarter of next
year.
No comments:
Post a Comment