Basic Energy files for four geothermal service deals in the Philippines

Listed company Basic Energy Corp. is eyeing the development of geothermal projects in the Philippines. According to a regulatory filing to the Philippine Stock Exchange, the company has filed an application for geothermal service contracts in four locations classified as frontier areas with the Philippine Department of Energy.

“Basic added that it has also sent to DOE letters of intent to develop run-of-river mini hydro areas in Negros Occidental. The company is focused on business opportunities for the development of alternative fuels and renewable energy, such as hydropower generation, bio-diesel production, biomass to power projects and other areas with good business potential, as it continues to pursue its core business in the oil and gas exploration and development.

In September last year, Basic signed a farm-in agreement with Geoenergy, which allowed the latter to acquire up to 70-percent participating interest in the Mabini geothermal project. This deal entails funding 100 percent of the exploration costs up to the completion of drilling one geothermal exploration well.

Geoenergy said it plans to acquire, explore and develop geothermal energy resources in the Philippines for power generation.

In 2010, Basic announced that it has completed the initial assessment of the geothermal resource in its geothermal service contract in Mabini, Batangas.

“Our initial assessments indicate that the area has a good potential for a 20-megawatt power generation that could be developed in a 2- to 3-year period, considering the existence of adequate infrastructure, adjacency to transmission lines and a strong power demand in the area,” Basic said.

Basic Energy is the former Basic Petroleum Corp., which has a long experience and know-how in energy exploration and development, and has participated in almost all the oil discoveries in the country that have been put under production since 1978.”

Source: Business Mirror