Drilling at Mabini geothermal on track

MANILA, Philippines - Drilling at the Mabini geothermal service contract in Batangas is set to commence in May after Basic Energy Corp. and partner Trans-Asia Oil and Energy Development Corp. tapped a unit of Lepanto Consolidated Mining Co.

Basic Energy recently disclosed the consortium approved the drilling program for an exploratory well in the Geothermal Service Contract No. 8 in Mabini, Batangas.

“In this connection, the consortium yesterday formally signed the drilling contract calling for Diamond Drilling Corp. of the Philippines to provide services for the drilling and coring of an exploratory hole with a minimum depth of 1,500 meters,” the company said.

Basic Energy said the decision to award the drilling contract to Diamond Drilling “followed the consortium’s rigorous assessment of the technical capabilities of shortlisted contractors vis-à-vis its approved budget.”

Diamond Drilling is a wholly owned subsidiary of Lepanto Consolidated Mining Co., one of the Philippines’ oldest mining companies.

Basic Energy said the drilling program is set to be completed within 90 days from commencement.

The firm also said it has submitted a Notice of Intent to Drill to the Department of Energy.

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

Basic Energy has a 75 percent stake in the project and is the operator of the service contract.