Basic Petroleum may go into coal, gold mining

Basic Petroleum Corp. (formerly Basic Consolidated Inc.) is in talks with prospective partners for its planned foray into coal exploration and/or gold mining, the company told the Philippine Stock Exchange.

At the same time, Basic Petroleum said it continues to conduct studies on a sorghum project. Sorghum is used for food, fodder, and the production of alcoholic beverages. It can also be made into excellent wall board for house building, as well as biodegradable packaging. It does not accumulate static electricity, so it is also being used in packaging materials for sensitive electronic equipment.

Basic Petroleum recently underwent a quasi-reorganization to clean up its balance sheet. The corporate restructuring involved the decrease its authorized capital stock to P500 million from P2 billion and the reduction of the par value of its shares from P1 to P0.25 per share.

The equity restructuring was made so that the reduction surplus arising from the decrease in the par value of its shares will be used to wipe out accumulated deficit. This will pave the way for the company to attract direct investments for its projects, both oil and non-oil.

The company has oil concession areas in Mindoro, and some in Palawan and the Sandakan Basin (Sulu Sea).

Basic Petroleum sold its 500 million shares or 100 percent stake in Basic Petroleum and Minerals Inc. to Forum Energy Plc. early this year for a total consideration of $17 million.

Forum Energy is the joint venture company formed by Canadian firm Forum Energy Corp. and British company Sterling Energy Plc. to develop oil, gas and coal sources in the Philippines.

After three decades of oil exploration, Basic Consolidated Inc. became an investment holding company in 1997 and diversified into a group of wholly-owned companies, namely: Basic Petroleum & Minerals Inc., Basic Diversified Industrial Holdings Inc., Basic Consolidated Land Inc., and Basic Consolidated International Inc.