The consortium of Basic Energy Corp. and Trans-Asia Oil and Energy Development Corp. is on track to complete the drilling of Mabini geothermal power project in Batangas by September.
Basic said in a disclosure to the stock exchange on Monday once drilling reached a depth of 1,500 meters, testing at Mabini geothermal project would follow.
“Results are projected by mid-September assuming are all go according to plan,” Basic Energy senior vice president Anthony Cuaycong said.
Cuaycong said drilling was projected to reach 78 days from spud date of June 15.
“The anchor casing has been installed at a depth of 373 meters, allowing coring operations to commence at that depth, to reach a target depth of 1,500 meters,” Basic said.
Core drilling operation reached a depth of 409 meters as of July 20, 2016.
“The well is projected to validate the geothermal resource that would be capable of fueling a 25-MW power plant,” it said.
Basic is currently drilling the first well in geothermal service contract No. 8 located in Calumpan Peninsula, covering 3,841 hectares.
Basic owns a 75-percent of the service contract, while Trans-Asia has the remaining 25 percent.
Aside from the Mabini project, the other projects are East Mankayan geothermal project in Benguet, Mt. Mariveles geothermal project, West Bulusan geothermal project and Mt. Iriga geothermal project. Desco Inc. has taken an 80-percent stake in the Iriga project.
Basic Energy president Oscar De Venecia Jr. earlier said the solar and geothermal projects still needed incentives such as the feed-in tariff to make the projects more viable.
The company also allocated P150 million for capital expenditure this year, bulk of which are for the geothermal drilling operations in Mabini, Batangas.
“Without FIT, it becomes very difficult for a project, such as solar or wind, to flourish…An FIT system for geothermal will always be advantageous… makes it easier to invite potential partners to come in. It becomes easy for us to calculate economics for the project,” he said.
De Venecia said the company wanted to develop renewable energy projects that could bring in important short-term revenue for the company.
“All of our projects right now are long term in gestation period,” he said, adding that the company was looking at projects to bring immediate impact on the bottomline of the company.