Trans-Asia acquires stake in Batangas project, Philippines
Trans-Asia Oil and Energy Corp. signs agreement under which it will acquire a stake of 10% and later up to 40% of the Batangas geothermal exploration project from Basic Energy Corp.
Reported today, “Trans-Asia has signed a Memorandum Agreement under which it 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.”
Source: Business World Online