Trans-Asia Oil and Energy Development Corp. has raised its stake in a geothermal service contract located in Mabini, Batangas.
In a disclosure to the Philippine Stock Exchange (PSE), Trans-Asia said it acquired from Basic Energy Corp. (Basic) a 25-percent participating interest in Geothermal Service Contract No. 8.
Trans-Asia said it already signed a farm-in agreement and a deed of assignment with Basic Energy providing for its acquisition of such stake.
“As part of its farm-in obligation, Trans-Asia completed a comprehensive gravity geophysical program in the area of interest,” said Trans-Asia, the power generation arm of the Phinma Group.
Under GSC No. 8, one exploratory well is committed to be drilled by the third quarter of this year.
The new assignment of interest is still subject to the approval of the Department of Energy (DOE).
In 2013, Trans-Asia signed an agreement for a 10-percent stake in Basic Energy’s geothermal service contract, with the option to increase it to up to 40 percent.
Both Basic Energy and Trans-Asia also agreed on the sharing costs for the drilling of exploratory wells for the Mabini project.
Basic Energy earlier said that the contract calls for the first exploratory well to be drilled by July 2015.
For the Mabini project, Trans Asia will have the right to be first in negotiating a purchase accord with the consortium for all the electricity output to be generated by the project, at commercially competitive rates.
Trans Asia will also have first call on purchasing the power to be generated by the Mabini service contract and in the construction of the required power generation plants.