Basic Energy to develop geo sites in Sorsogon

MANILA, Philippines - Basic Energy Corp., a listed oil and gas company, has received the green light from the Department of Energy to develop geothermal resources in Sorsogon.

In a disclosure to the Philippine Stock Exchange, the company said it received its certificate of registration from the DOE as a renewable energy developer of geothermal resources.

These geothermal resources are located in Magallanes, Juban, Irosin, Bulusan, Magdalena, Matnog and Bulan in Sorosogon.

“The certificate of registration shall serve as the basis of entitlement to incentives of Basic Energy under Republic Act 9513, otherwise known as the Renewable Energy Act of 2008,” said Basic Energy.

Basic Energy said in November last year that it would embark on a number of significant projects this year, with total funding of roughly P300 million.

The firm will spend P100 million for its project in Indonesia, particularly to drill 10 wells for its project in Central Java.

If successful, the wells would open up more opportunities in other parts of this field, officials have said.

So far, Basic Energy has spent some P46 million to drill the first two wells in partnership with Petrosolve Malaysia. Pre-production work should be completed this year.

Basic Energy, meanwhile, is allocating P20 million for its three percent share in the drilling of a sizeable gas prospect in Mindoro, the Progreso Prospect in Service Contract 55 in Mindoro.

In the geothermal sector, Basic Energy said it would start geological exploration and other geo-scientific studies for geothermal concessions in Batan, Benguet and Camarines Sur.