Listed oil and gas company Basic Energy Corp. has earmarked $2.5 million in capital expenditure this year, which will be used for the firm’s geothermal projects within the country and a joint venture in Indonesia.
Oscar de Venecia, president and chief executive officer of Basic Energy, said that the company has allocated $2.5-million capex this year, significantly higher than what it spent in 2012.
De Venecia said the company spent “very little” in 2012 compared to what it is going to spend this year.
Of the $2.5 million, a significant amount will be used for its Indonesian joint venture with Malaysian firm Petrosolve Sdn Bhd.
“Actually, you have to remember that the Indonesia project just happened very recently. So just a minor part of that [capex]is the Indonesian project,” de Venecia said, adding that for its Indonesian joint venture alone, the company is looking to spend about $1 million to $1.5 million this year.
The overall amount that the company may spend for the Indonesia project may go as high as $2 million to $2.5 million, he added.
The rest of the company’s capex will also go to its geothermal projects in the country.
“[The rest of the capex will be used for] geothermal projects, preparations for the drilling and then we add to that the preliminary work that we have to do in our three new service contract areas in geothermal, plus the preparations on the fourth,” de Venecia said.
He also said that the company has filed an application with the Department of Energy for 10 mini-hydro projects in the Philippines.
Basic Energy filed early last year its applications for mini-hydro service contracts in 10 frontier areas located in the Visayas region.
As of April this year, the Energy department notified the company to pay the processing fees for two of its 10 applications while the others are still under evaluation.
Basic Energy expects the service contracts for the two applications be awarded in the third quarter this year.