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EDC plans to spend $85 million on Mariposa project in Chile

Mariposa Drilling Site, Chile (source: Magma Energy)
Alexander Richter 8 May 2015

In 2013, EDC signed a joint venture agreement with Alterra Power Corp. for the development of the Mariposa geothermal concession area in Chile.

Following the good news yesterday by Ormat signing a EPC contract in the country, today Energy Development Corp. (EDC) said that they will invest nearly P4 billion (USD $85m) to conduct exploratory activities within a geothermal prospect in Chile this year. This will cover the Mariposa concession area, which will be developed by the Lopez-led energy firm in partnership with Canada’s Alterra Power Corp.

Arman V. Lapus, EDC managing director for Latin America, said the company will undertake “the first major international drilling campaign” for the concession area in October. “We’re hoping to drill at least two to three wells,” Mr. Lapus told reporters after the company’s annual stockholders’ meeting in Makati City. “The intention is to prove the availability of resources in the area,” he added.

Nestor H. Vasay, EDC chief finance officer, said EDC budgeted “P3.8 billion for Mariposa drilling.”

EDC in 2013 signed a joint venture agreement with Alterra Power Corp. for the development of the Mariposa geothermal concession area in Chile. Under the deal, EDC will take a 70% interest in Compania De Energia, a subsidiary of Alterra that owns the Mariposa project. The remaining 30% will continue to be held by the Canadian firm through its wholly-owned subsidiary, Magma Energy Chile Limitada.

EDC is also planning to enter the geothermal business in Peru. “For Peru, we basically narrowed down the really good concessions. The really good prospects we are talking about cover maybe four to five concessions” Mr. Lapus said. “Some of them are already with us and some we have already applied for,” said Mr. Lapus. “We can advance them to the point that we can drill in the near future but we want to choose the best partner,” he added. He added that EDC is also exploring opportunities outside Chile and Peru.

EDC also partnered with Australia’s Hot Rock Ltd. for various geothermal resource exploration projects, also in Chile and Peru.
EDC is the country’s largest geothermal producer. It has since expanded to other energy sources.