Basic Energy sets drilling to determine Mabini commercial viability

MANILA, Philippines — Listed Basic Energy Corp. (BEC) and its partner Phinma Energy Corp. are drilling a confirmatory well in the Mabini geothermal project in Batangas to determine its commercial viability to produce baseload power.

The well will be drilled towards the latter part of the year or early next year, BEC president and COO Oscar de Venecia Jr. said in an interview after the company’s stockholders’ meeting.

“We’ve done the first well. We’ve gathered some data but we feel we can gather more data so that’s why we’re doing confirmatory well, not in the same area but somewhere near,” he said.

 “If we can confirm if there is a resource that can be developed then we can come out with a development plan and feasibility study and begin with the aim of declaring its commercial viability” he added.

Awarded to BEC in 2007, the Mabini Geothermal Service Contract No. 8, located in San Teodoro, Mabini, Batangas, covers 3,841 hectares.

According to the pre-feasibility study, the area is projected to produce 20 to 60 megawatts of power.

De Venecia said the company has budgeted around P50 million for the confirmatory well, part of the P60-70 million set allocated for its geothermal prospects.

BEC currently has five geothermal service contracts, namely the Mabini Geothermal Service Contract (SC) in Batangas, East Mankayan Geothermal prospect in Ifugao, Mt. Mariveles Geothermal project in Bataan, Mt. Iriga Geothermal project in Albay and West Bulusan Geothermal prospect in Sorsogon.

Even as the company looks for investments here and abroad to provide immediate revenue stream, geothermal development will remain as part of BEC’s core business, de Venecia said.