LISTED Basic Energy Corp. has allotted $2.5 million to an oil-exploration project in Java, Indonesia, the company said in its 2014 management report released last week.

The project is being undertaken by PT Basic Energi Solusi, the foreign investment company in Indonesia of Grandway Group Ltd., the joint-venture company formed by Basic Energy and Malaysia-based partner Petrosolve Sdn. Bhd. (Petrosolve).

PT Basic Energi Solusi acquired the rights to manage 10 wells in the area, with the objective of rehabilitating these wells for possible limited oil production. Drilling operations are ongoing to target maximum depths of about 400 meters.

PT Basic Energi Solusi recently informed Basic Energy it has spud in its third well. To spud an oil well refers to the process of drilling an initial surface hole.

With regard to the two wells earlier drilled, PT Basic Energi Solusi said the first well has reached its depth which indicates “good oil saturation,” while the second well “continues operation to reach target depth.”

It added that preparation is ongoing for a new program to test and produce the said wells.

The Department of Energy (DOE) earlier certified Basic Energy as a renewable-energy (RE) developer of geothermal resources. It holds minority interests in service contracts (SC) 47 and SC 53, situated in Mindoro, as well as in SC 41 in Sulu Sea.

The company said it continues to look for business opportunities for the development of RE sources, as it pursues its core business in oil and gas exploration, and development.

Basic Energy posted a net loss of P4.82 million in end-March, as expenses increased to P11.62 million during the first quarter. It booked P5.98 million in revenues, up from P4.7 million in the same period last year.

Source: http://www.businessmirror.com.ph/index.php/en/business/companies/33067-basic-energy-to-invest-2-5m-in-java-project