by Lenie Lectura, 26 February 2015
TRANS-Asia Oil and Energy Development Corp. is joining Basic Energy Corp. in putting up a 20-megawatt (MW) geothermal power plant in Mabini, Batangas.
In a disclosure to the stock exchange, both signed a farm-in agreement, in which Trans-Asia will acquire from Basic Energy a 25-percent interest in the rights, interest, privileges, duties and obligations in and under Goethermal Service Contract (GSC) No. 8, or the Mabini Geothermal Service Contract, awarded by the Department of Energy (DOE) in July 2008. As part of its farm-in obligation, Trans-Asia completed a comprehensive gravity geophysical program in the area of interest. Under GSC No. 8 one exploratory well is committed to be drilled by the third quarter of this year.
The agreement also states that Trans-Asia shall share in the cost of the first exploration well committed under sub-Phase 3 of the service contract.
The above assignment of interest is subject to the approval of the DOE.
“Under the farm-in agreement, within five days from the date of signing of the agreement, Basic Energy and Trans-Asia shall execute a deed of assignment to cover the assignment by Basic Energy of the 25-percent undivided interest of Trans-Asia, subject to the approval of the DOE,” Basic Energy said.