Batangas geothermal drilling OKd

The Department of Energy (DOE) has issued the go-signal to start drilling at the Mabini geothermal service contract in Batangas which is jointly owned by Basic Energy Corp. and Trans-Asia Oil and Energy Development Corp.

In a disclosure to the Philippine Stock Exchange yesterday, Basic Energy said the consortium received the DOE’s approval of the Notice of Intent to Drill an exploratory well in Geothermal Service Contract No. 8.

Drilling will commence in the second week of May, Trans- Asia senior vice president Raymundo Reyes said in an interview at the company’s stockholders’ meeting yesterday.

“We have committed to spend around P50 million for the contractor and more than twice that amount for the whole project,” he said.

Last month, the consortium tapped Diamond Drilling Corp. of the Philippines (DDCP), a unit of Lepanto Consolidated Mining Co., to provide drilling and coring services for an exploratory well at a minimum depth of 1,500 meters.

The drilling program is set to be completed within 90 days from the start of drilling works.

Located in Calumpan Peninsula, the Mabini Geothermal Sevice Contract No. 8 covers 3,841 hectares. Based on the prefeasibility study, the area is projected to yield a power capacity between 20 megawatts and 60 MW.

Basic Energy has a 75 percent stake in the project and is the operator of the service contract. Trans-Asia has an equity participation of 25 percent.