Listed Basic Energy Corp. has earmarked P300 million for capital expenditures next year to bankroll its major projects in the oil and gas, and geothermal energy fields.
In a statement, Basic Energy said that it has developed a well-balanced portfolio consisting of short-term cash flow producing projects and medium- to long-term more economically-robust projects that would ensure sustainability and eventual major growth for the company.
Overseas, the company through its subsidiary, Grandway Group Ltd. (Hong Kong) and Grandway’s operating arm in Indonesia, PT Basic Energy Solusi, will spend at least P100 million to complete a 10-well redevelopment drilling in Central Java.
“The object is to produce ‘low-risk’ reserves from the shallower sands within the field. If successful, the wells would open up more opportunities in other parts of this field,” Basic Energy said.
So far, Basic Energy has spent about P46 million to drill the first two wells whose pre-production work should be completed this
year, in partnership with Petrosolve Malaysia. Basic Energy has also allocated P20 million for its 3-percent share in the drilling of a sizeable gas prospect, the Progreso Prospect in Service Contract 53 in on-shore Mindoro.
For its geothermal venture, Basic Energy is set to drill its Mabini Geothermal Prospect located in Batangas.
“A discovery in this medium-risk prospect will usher the company’s entry into the highly-profitable geothermal supply and power generation business,” the company said. The company is also planning to explore new geothermal concessions.
In 2013, Basic Energy successfully acquired three new geothermal concessions located in Bataan, Benguet and Camarines Sur. The company will commence geological exploration and other geo-scientific studies for these areas. Currently, Basic Energy is finalizing its negotiations with the Department of Energy to acquire a fourth concession located in Sorsogon.