BASIC Energy Corp. (Basic) is giving up a portion of its participating interest in a geothermal exploration project in Mabini, Batangas.
Its 25 percent participating interest in Geothermal Service Contract 8 will be assigned to Trans-Asia Oil and Energy Development Corp. The transaction was approved by the Department of Energy (DOE).
The service contract covers the Mabini geothermal exploration venture that was awarded by the DOE to Basic Energy in 2008.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Trans-Asia said the drilling of one of the exploratory wells will happen next year.
“The consortium is currently preparing for the drilling of one exploratory well in the area by the third quarter of 2016,” said Trans-Asia.
Basic Energy and Trans-Asia earlier entered into a farm-in agreement regarding the equity acquisition in GSEC 8.
Trans-Asia is buying from Basic Energy a “25-percent undivided participating interest in the rights, interests, privileges, duties and obligations in and under Geothermal Service Contract No. 8.”
The agreement stipulates that “within 5 days from the date of signing of the agreement, Basic and Trans-Asia shall execute a deed of assignment.