News

EDC to spend $66m on South American projects

Mariposa Drilling Site, Chile (source: Magma Energy)
Alexander Richter 10 Jul 2013

Energy Development Corp. announces $66 million capital expenditure plans for Mariposa project in Chile ($58m) and $8 million to be paid for compensation of earlier work by Alterra Power in Peru.

While reported on earlier today already, there are now details emerging on the capital expenditure planned by Philippine’s Energy Development Corp (EDC) in a recent spending plan published.

In a disclosure to the Philippine Stock Exchange, EDC said four shareholder agreements it signed with Canada’s Alterra Power Corp provide that the Philippine listed firm will spend $58.3 million for their Mariposa project in Chile.

EDC will likewise shell out $8 million for the Tutupaca Norte, Loriscota and Crucero geothermal projects in Peru to compensate Alterra for its previous development costs.

The amount will be used to fund a work plan to develop the Mariposa project “by building infrastructures over the next 18 months.”

“For the Peruvian projects, the relevant project agreements contemplate implementing an agreed work plan to conduct various exploration surveys over the next 12-15 months,” EDC said.

The company said its continued participation in the geothermal projects is subject to positive results from resource assessment studies that will be undertaken in the subject areas.

EDC earlier acquired a 70 percent stake in each of the companies operating the four projects. Under its agreements with Alterra, EDC will lead in the exploration and development of geothermal prospects, while the Canadian firm, through its subsidiaries, will retain a minority stake.”

Source: Inter Aksyon