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PetroEnergy receives approval for stock rights offering

Mount Makiling, Maibarara geothermal field, Philippines
Alexander Richter 9 Jun 2010

The Philippine Stock Exchange approved application of PetroEnergy Resources Corp to list additional common shares in a stock offering expected to raise US$15 million to finance into its geothermal project at Maibarara, Philippines.

In news from the Philippines, it is said that “The Philippine Stock Exchange has approved the application of PetroEnergy Resources Corp. of the Yuchengco group to list an additional 136.9 million common shares for its stock rights offering, which will raise P700 million (US$15 million) to finance a geothermal project.

PetroEnergy said that the stock rights offering covers stockholders of record as of June 17, 2010 and will be available for P5 per share.

“The proceeds from the company’s stock rights offering will be invested in the company’s Maibarara geothermal project through the company’s wholly-owned subsidiary, PetroGreen Energy Corp.,” it said.

PetroEnergy expects to generate net proceeds of P681.3 million from the stock rights offering. It set the offering period between June 28 and July 2, 2010 and listing date on July 12.

The board of PetroEnergy approved in February the creation of PetroGreen to carry out the company’s renewable energy projects.

PetroEnergy formed PetroGreen after obtaining two wind energy service contracts in Sual, Pangasinan and Nabas, Aklan from the Energy Department in September 2009, and another for the Maibarara geothermal field.

PetroGreen signed a joint venture agreement with Trans-Asia Oil and Energy Development Corp. and PNOC Renewables Corp. in May 19 for the integrated development and operation of the Maibarara project in Batangas and Laguna provinces.

The companies agreed to organize Maibarara Geothermal Inc., which capitalized at P1.125 billion. PetroGreen owns 65 percent of the equity while Trans-Asia holds 25 percent. PNOC Renewables Corp. owns 10 percent.

The joint venture aims to develop the Maibarara geothermal steam field at the western flank of Mount Makiling and commission the first 20-megawatt power plant by the second half of 2013. Total project cost may reach P2.8 billion.

The consortium may spend $12 million to $18 million in the first two years of the project for information and education campaigns, environmental permit, road rehabilitation, work-over and discharge tests of old wells, drilling of up to two wells, detailed engineering studies and initial civil works for the steam field and power plant.

PetroEnergy plans to put two wind projects in Aklan and Pangasinan with a combined capacity of 60 MW at a cost of $53 million.

The wind projects are in Nabas-Buruanga-Malay in Aklan (30 MW) and in Sual, Pangasinan (30 MW).”

Source: Manila Standard