Basic Energy, Trans-Asia ink farm-in deal for Mabini project

MANILA, Philippines - Basic Energy Corp., a listed oil and gas company, and Trans Asia Oil and Energy Development Corp., the power generation arm of the Phinma Group, have signed a farm-in agreement and deed of assignment covering a geothermal service contract in Mabini, Batangas.

In separate disclosures to the Philippine Stock Exchange (PSE), Trans-Asia and Basic Energy said the agreements provide for Trans-Asia’s acquisition from Basic of 25 percent participating interest in geothermal service contract (GSEC) 8 dated July 10, 2008.

“As part of its farm-in obligation, Trans-Asia completed a comprehensive gravity geophysical program in the area of interest. Under geothermal service contract No. 8, one exploratory well is committed to be drilled by the third quarter of this year,” Trans-Asia said in its disclosure.

The assignment of interest is subject to the approval of the Department of Energy, the two companies said.