APC Group upbeat on geothermal prospects

Aragorn Power and Energy Corp., the power unit of publicly-listed APC Group Inc., is optimistic on the prospects of a pending geothermal service contract (GSC)  in Batong Buhay,  Kalinga Apayao, the company said.

“The GSC for Kalinga Apayao is expected to be signed soon by the Department of Energy because the consent of the majority of the indigenous people has been secured,” APC said in a statement.

According to APC, the Kalinga Apayao field has the “potential to power a 120-200 megawatt power plant.”

APC said Aragorn also applied for a GSC in Antamok, Benguet which is also pending approval by the DOE Aragorn likewise intends to build a geothermal power plant in this area.

APC said it is also looking forward to exploration works to be undertaken by Monte Oro Resources and Energy Inc. (MORE) on Service Contract 48 in the Cagayan Basin for gas and oil.   

The service area, which covers 748,000 hectares, was awarded to Aragorn in February 2005.

On July 12, 2007, Aragorn signed a Farm-in Agreement with MORE.  Under the agreement, MORE will drill one  well or conduct an aeromagnetic survey and detailed gravity by August 2008 with a minimum financial commitment of an $1.8 million to $2.2 million.  Aragorn earned a 25 percent carried-free interest from the agreement.

The Cagayan Basin has been previously explored by PODCO, Stanvac, Philodrill, PNOC-EC and more recently, South China Petroleum and Alsons Resources. The exploration of the area has resulted in a gas discovery in the Ipil-San Antonio wells where PNOC has installed a three-megawatt power plant.

In coal mining, APC unit Aragorn Coal Resources, Inc. has two coal operating contracts in Masbate and Isabela consisting of five coal blocks or a total of 5,000 hectares.  Detailed exploration works including drilling are now being undertaken in the two areas.  Preliminary exploration results showed promising coal reserves and assay results.  Extraction of coal is expected to start by end of the year.

For its mining venture, APC Mining Corp. has applications for exploration permits in Misamis Oriental, Zambales and Palawan which are areas proven to contain chromite and nickel deposits. The total area applied for is about 29,000 hectares. 

According to APC, the most promising area is Alubijid in Misamis Oriental near Cagayan de Oro, as preliminary exploration works revealed the presence of high grade nickel and copper deposits.

In the first quarter this year, APC trimmed its losses to P3.2 million from P111.6 million a year earlier due to the deconsolidation of the Philippine Global Commucations (Philcom).