Trans-Asia Oil okays stock rights offering

MANILA, Philippines - Trans-Asia Oil & Energy Development Corp. said the other day its board has approved a plan to undertake a stock rights offering.

In a disclosure to the Philippine Stock Exchange, Trans-Asia said its shareholders can buy seven new shares for every 10 shares they hold as of a record date yet to be determined by the company.

The shares will be priced at P1 each. No other details were given.

Trans-Asia engages primarily in oil exploration but has investments in cement manufacturing, coal trading and power generation.

The company continues to seek investment opportunities to expand its power generation portfolio. It is now developing a 135-MW clean coal-fired power plant project in Calaca, Batangas which will have significantly lower carbon emissions in compliance with the Department of Environment and Natural Resources (DENR) standards.

The power plant is envisioned to start commercial operation in 2014 and will be Trans-Asia’s first base-load plant to support its electricity supply business.

To augment the critical power generation capacity of the Mindanao grid, Trans-Asia has initial a pre-engineering and feasibility study to build a similar 135-MW coal-fired power plant in Northeastern Mindanao. This is targeted to be operational by 2015.

Currently, the company is moving its 21-MW bunker power plant from Calamba in Laguna to La Union, to serve as a merchant plant and service its bilateral contract with Swiss cement giant Holcim’s plant in the area. It is expected to be in operation by 2012.

Trans-Asia has completed the feasibility study of its 54-MW San Lorenzo, Guimaras wind project and has identified potential engineering, procurement and construction contractors.  

The company is also in the final stages of the wind resource study of its 50-MW Ballesteros, Cagayan wind project. Once the tariff regime required for viability of the wind projects is in place, Trans-Asia will proceed with the wind projects as part of its vision to become pioneers in wind energy.

Trans-Asia conducts its power generation and supply activities directly or through its generation company TA Power, through a joint venture with Holcim Philippines Inc. (HPI). It supplies the electricity requirement of HPI’s Norzagaray, Bulacan cement plant via the former’s 52-MW bunker C-fired power plant.

The company, through Trans-Asia Renewable Energy Corp., a wholly-owned subsidiary, is measuring wind resource to help determine the feasibility of establishing commercially viable wind energy project.