MANILA, Philippines - The Department of Energy (DOE) has cleared the 25 percent buy-in of Trans-Asia Oil and Energy Development Corp. in the geothermal service contract (GSC) in Mabini, Batangas.
Trans-Asia said it was informed by Basic Energy, the GSC operator, that the farm-in agreement was approved by the DOE.
“Please be informed that Basic Energy Corp., operator of Geothermal Service Contract No. 8 covering a certain area in Mabini, Batangas, notified us that the Department of Energy approved the assignment of 25 percent participating interest in the Mabini GSC from Basic to Trans-Asia,” the company said.
Trans-Asia said the consortium is preparing for the drilling of one exploratory well in the area by the third quarter of 2016.
Both parties signed in December 2013 an agreement for the exploration and development of geothermal service contracts.
Under the deal, Trans-Asia acquired a 10 percent stake in Basic Energy’s Mabini GSC, with the option to boost its stake to up to 40 percent.
Furthermore, it also has the option to acquire up to 60 percent of Basic Energy’s other geothermal service contracts in Mariveles Bataan, East Mankayan in Benguet, West Bulusan in Sorsogon and Mt. Iriga in Camarines Sur.
In February this year, both firms approved the 25 percent participating interest of Trans-Asia in GSC 8.