KUALA LUMPUR: The Philippine-listed Basic Energy Corp said the company and its Malaysian partner, Petrosolve Sdn Bhd, have begun drilling their fourth and fifth oil wells in Indonesia.

“Preparation is also under way for the spud-in of its sixth well,” Basic Energy told the Philippines Stock Exchange last week.

PT Basic Energi Solusi is the foreign investment company in Indonesia of Hong Kong-based Grandway Group Ltd, which is a 70-30 joint venture between Basic Energy and Petrosolve, respectively.

Basic Energy and Petrosolve earlier invested 8.5 billion Indonesian rupiah to manage and operate 10 oil wells in Indonesia. PT Basic Energi Solusi has so far drilled three out of 10 wells planned in the area.

According to an article posted on Basic Energy’s website, the first oil well drilled by PT Basic Energi had reached its target depth though it encountered complications and could not produce. Test drilling is ongoing at the second and third wells.

“Further studies need to be done to optimise oil recovery prior to the construction of production facilities and going into the production phase,” Basic Energy said.

PT Basic Energi Solusi, which has the rights to manage 10 oil wells in Central Java in Indonesia, was incorporated to provide consultancy, management and supervision service s in the management of oil wells.

Petrosolve, a firm registered in Malaysia, is engaged in the business of oil field services, including application of chemicals for increased oil production and the development of oil and gas fields and wells.

Basic Energy and its subsidiary Southwest Resources Inc are involved in various oil exploration activities.

It holds minority stakes in service contract 47 and service contract 53, located offshore and onshore Mindoro province, respectively, as well as service contract 41 in the Sulu Sea.

The company, through its subsidiaries, is also involved in the production of ethanol and other biofuels, development of geothermal renewable energy resources, and development and production of farm products.

Basic Energy trimmed its net loss to 5.643 million pesos as of end-March.

Source: http://www.4-traders.com/BASIC-ENERGY-CORP-6090099/news/Basic-Energy–OG-firm-drilling-more-wells-in-Indonesia-18743124/