Basic Energy signs joint venture with Australian firm

MANILA, Philippines - Basic Energy Corp. has signed an agreement with New World Energy Ltd. (NWE) of Australia to jointly undertake development of the Mabini geothermal energy project in Batangas.

NWE has existing geothermal energy exploration projects within Australia. It has formed Geoenergy together with local partners Filtech Energy Drilling Corp. and PhilCarbon Inc. to acquire, explore and develop geothermal energy resources in the Philippines for power generation.

In its disclosure to the Philippine Stock Exchange yesterday, Basic Energy said it would prepare a farm-in agreement that would grant Geoenergy the right to acquire up to a 70-percent interest in the project for funding 100 percent of the exploration costs up to the completion of drilling one geothermal exploration well.

The funding requirements of this project shall be handled by NWE.

Basic Energy signed last week a memorandum of understanding with British Virgin Islands-based Prime Energy Consult Ltd. to jointly develop business opportunities in the oil and gas industry.

Prime Energy, whose offices are based in Dubai, UAE, is currently in the business of providing technical advisory and consulting services to the oil and gas industry. Its current projects are focused on the Arabian Gulf and East Africa regions.

Aside from its oil and gas projects, Basic is into the exploration and development of renewable energy resources such as geothermal biomass and hydropower. Its wholly-owned subsidiaries include Basic Petroleum & Minerals Inc. (BPMI), an oil and gas exploration and mining company; Basic Diversified Industrial Holdings Inc., an investment holding company and iBasic Inc., an information technology management company and service integrator. 

It also owns 72.58 percent of Southwest Resources Inc., an oil exploration company.

Its two other wholly-owned subsidiaries are Basic Biofuels Corp., which is into the development of biofuels and Basic Ecomarket Farms Inc., which is into agriculture, focusing initially on cassava development and production.

Basic Energy is presently a party, together with other oil exploration companies, in the exploration, development and production of contract areas in Service Contract 47 in offshore Mindoro and Service Contract 53 in onshore Mindoro.