A farm-in deal was firmed up between local firms Trans-Asia Oil and Energy Development Corporation and Basic Energy Corporation on the former’s equity acquisition in a geothermal service contract in Mabini, Batangas.

It was provided under the farm-in agreement that Trans-Asia will acquire from Basic Energy “25-percent undivided participating interest in the rights, interests, privileges, duties and obligations in and under Geothermal Service Contract No. 8.”

GSEC 8 covers the Mabini geothermal exploration venture that was awarded by the Department of Energy (DOE) to Basic Energy in 2008.

The farm-in arrangement prescribes that “within 5 days from the date of signing of the agreement, Basic and Trans-Asia shall execute a deed of assignment to cover the assignment by Basic of the 25-percent undivided participating interest of Trans-Asia.”

That offshoot of their deal, it was emphasized, shall still be subject to the approval of the Department of Energy.

No amount has been provided as to the cost for Trans-Asia in its acquisition of the shares in Mabini geothermal service contract.

The farm-in deal similarly provides that “Trans-Asia shall share in the cost of the first exploration well committed under sub-phase 3 of the geothermal service contract.”

Trans-Asia shall similarly shoulder “the cost of securing the GSC and other general and administrative cost proportionate to its participating interest.”

The potential of the Mabini geothermal block was initially assessed at 20 megawatts – but steam output when enhanced may be feasible for 40MW capacity.

A pre-feasibility phase for the project was undertaken years back. This covered various facets, such as: technical (pre-development); technical (at development phase); environmental and social; financial and economics; project schedule and implementation; and risk assessment.

Source: http://www.mb.com.ph/trans-asia-basic-energy-ink-farm-in-deal-for-geothermal-service-contract/