LISTED Basic Energy Corp. said on Thursday that it would continue exploration work in certain areas in Mindoro.
Basic Energy told the local bourse that for 2017, the company “will continue with its business in oil and gas exploration, being a party, together with other exploration companies, to a service contract for the exploration, development, and exploitation of certain areas situated in onshore Mindoro (Service Contract 53).”
Basic Energy said that for SC 53, the consortium has agreed to drill Progreso-2 to fulfill one of the two well obligations under the Sub-Phase 2 program.
“While preparations are on-going for the drilling works, the term for this phase is deemed suspended and will start upon the resolution of pending issues with the NCIP [National Commission on Indigenous Peoples] and the Famatodi, Inc., the association of indigenous peoples in the project area,” the company said.
Basic Energy has a three-percent participation in SC 53. This service contract was awarded by the Department of Energy (DoE) on July 8, 2005 for a 10-year exploration period.
The contract covers 6,600 square kilometers of the onshore areas of Mindoro situated within the North Palawan Micro-Continental Block. Past exploration efforts in SC 53 included the acquisition of 2,000 kilometers of 2D seismic data and the drilling of four exploration wells.
The company has allocated P17 million for the operation of its oil and gas businesses in the country for 2017.
Basic Energy has business interests in various fields of renewable energy and alternative fuels, and oil and gas exploration and development.
Shares of Basic Energy slipped 1.36 percent to close at P0.22 on Thursday.