MANILA, Philippines - Basic Energy, a listed oil and gas firm, is in talks with potential partners for its geothermal project in Mabini, Batangas.
In a disclosure to the Philippine Stock Exchange (PSE), Basic Energy said it already held negotiations with potential investors for its Mabini geothermal energy project.
“The company has committed with the Department of Energy a work program that entails the drilling of one exploratory well by July 2014, with an estimated budget of $3.8 million. The exploratory well aims to confirm the extent of steam gas that can be generated in the service contract area,†Basic Energy said.
In a separate interview, Basic Energy president and CEO Oscar de Venecia Jr. said the company is in talks with at least two potential local partners for the project.
“We are in talks with partners. There are at least two to three local (investors). We want a significant stake. We can have anywhere from 30 percent to 51 percent (stake in the project),†De Venecia said.
Basic Energy signed the Mabini geothermal service contract in 2008. The area covers approximately 32.5 square kilometers and covers the Calumpan Peninsula in Batangas.
The contract period is five years and subdivided in three phases for geological, geophysical and geochemical works that are designed to identify a drilling local and to assess the geothermal potential of the contract area.
Basic Energy has set aside $2.5 million for capital expenditures this year.
The funds would be used for it investments in Indonesia and other projects in the Philippines such as geothermal and hydropower projects, De Venecia said.
Of the amount, Basic Energy expects to spend $1-$1.5 million for the development of the first two of 10 planned oil wells in Indonesia, he said.
De Venecia said the company, together with its partner Petrosolve Sdn Bhd of Malaysia (Petrosolve), is eyeing to develop the 10 oil wells, with development work set to start in the first two wells.