Basic Energy Corp. has approved a P300-million budget for 2014 to fund significant projects in the oil and gas and geothermal energy fields, company CEO Oscar de Venecia Jr. said.
The company said it has developed a well-balanced portfolio consisting of short-term cash flow producing projects (Indonesia redevelopment) and medium- to long-term, more economically robust projects (gas in Mindoro and geothermal project in Mabini) that would ensure sustainability and eventual major growth for the company.
In the company’s foray in Indonesia through its subsidiary, Grandway Group Ltd. (Hong Kong), and Grandway’s operating arm in Indonesia, PT Basic Energy Solusi, Basic will spend at least P100 million to complete a 10-well redevelopment drilling in Central Java. The objective was to produce “low-risk” reserves from the shallower sands within the field. If successful, the wells would open up more opportunities in other parts of this field, the company explained.
Thus far, Basic has spent some P46 million to drill the first two wells whose pre-production work should be completed this year, in partnership with Petrosolve Malaysia.
The company has also allocated P20 million for its 3-percent share in the drilling of a sizeable gas prospect, the Progreso Prospect in Service Contract 53 in onshore Mindoro.
Basic said it would also drill its Mabini geothermal prospect located in Batangas. A discovery in this medium-risk prospect would usher the company’s entry into the highly profitable geothermal supply and power generation business, it added.
This year, Basic said it has successfully acquired three new geothermal concessions located in Bataan, Benguet and Camarines Sur. The company will commence geological exploration and other geo-scientific studies for these areas to further its core geothermal strategy.
The company is finalizing its negotiations with the Department of Energy to acquire a fourth concession located in Sorsogon.