Basic Energy Corp. and Trans-Asia Oil and Energy Development Corp. have signed a contract with Diamond Drilling Corp. to drill the Mabini geothermal prospect in Batangas province.
Basic Energy said in a statement its joint venture with Trans-Asia approved a drilling program to spud an exploratory well in the geothermal prospect in Mabini, Batangas.
The companies said they submitted a notice of intent to drill to the Energy Department.
Diamond Drilling will provide services for the drilling and coring of an exploratory hole with a minimum depth of 1,500 meters. The drilling is set to be completed within 90 days.
“The decision to award the drilling contract to DDCP followed the consortium’s rigorous assessment of the technical capabilities of shortlisted contractors vis-à-vis its approved budget,” Basic Energy said.
Located in the Calumpan Peninsula, the Mabini geothermal sevice contract no. 8 covers 3,841 hectares.
The area based on the pre-feasibility study is expected to yield a power capacity of between 20 megawatts and 60 MW.
Basic Energy has a 75-percent stake in the project and is the operator of the service contract. Trans-Asia has an equity participation of 25 percent.
Under the terms of the farm in agreement, Trans-Asia will shoulder a 25-percent undivided participating interest in the rights, interests, privileges, duties and obligations under the geothermal service contract.
Trans-Asia decided to share in the cost of the first exploration well committed under sub-phase 3 of the contract after undertaking due diligence on the project, including geophysical work.
Basic Energy was originally incorporated as Basic Enterprises Inc. on September 19, 1968. It became an oil and gas exploration and development company on April 26, 1971, assuming a new name—Basic Petroleum and Minerals, Inc.
The company evolved from an operating company to a holding firm under the corporate name Basic Consolidated Inc.
The company in 2007 changed its corporate name to the present one after including the production of ethanol and other biofuels, and the development of other alternative and renewable energy sources to its primary purposes.