BASIC Energy Corp. is partnering with a Thai company to explore renewable energy resources in the country and overseas, the listed company told the stock exchange on Thursday.

In a disclosure, Basic Energy said it had signed a memorandum of agreement with Vintage Engineering Public Co. Ltd. (VTE), a publicly listed company based in Thailand, “for a strategic partnership to pursue the exploration, development, and production of renewable energy resources in the Philippines and abroad.”

“Basic Energy and VTE shall, after due diligence, execute definitive agreements to cover VTE’s subscription of 9% of the outstanding capital stock of Basic Energy,” the company said.

Basic Energy said VTE’s 9% equity investment covers 435,658,699 shares in the company’s unissued capital stock worth P139.41 million. The payments will be made in two tranches on Dec. 31 and March 31, 2017.

“VTE has the right to invest in the projects of Basic Energy, subject to any conditions precedent, and any terms and conditions which shall be further mutually agreed and determined in the future,” it added.

In the Philippines, Basic Energy has three company-owned properties that it described as having potential to be developed into solar farms, a venture that it expects to have an immediate impact on its bottom line.

Oscar L. de Venecia, Jr., Basic Energy president and chief executive officer, earlier said the company had partnered with nv vogt Philippines to look at the potential of Basic Energy’s 178,634 square meter property in San Fabian, Pangasinan for a solar energy project.

Based on the company’s estimate, the size of the property can accommodate a solar facility that could deliver a peak power of 15 megawatts (MW). It also has 415,895-sq.m. property in Bolinao, Pangasinan with an estimated potential of 27 MW, and a third property in Labason, Zamboanga del Norte with a potential capacity of 14 MW.

Basic Energy’s potential venture into solar energy comes amid the continuous drilling in its geothermal project in Mabini, Batangas. The company has a 75% stake in the project. The rest is held by Phinma Energy Corp., formerly Trans-Asia Oil and Energy Development Corp.

VTE was originally in the mechanical and electrical business, and eventually transformed into an engineering and engineering, procurement and construction (EPC) contractor, Basic Energy said.

“It became a publicly listed company in 2008. Currently, on top of its mechanical and engineering business, it operates as an EPC contractor, an O&M [operations and maintenance] operator, and its coal mine and a raw materials supply businesses, and aims to become a significant energy player in the region. In the short term, it has lined up various energy projects in Japan, Myanmar, Indonesia, and the Philippines,” it added.

On Thursday, shares in Basic Energy were up 6.98% to close at P0.23 each

Source: http://www.bworldonline.com/content.php?section=Corporate&title=basic-energy-teams-up-with-thai-company&id=134489