Basic Energy Corp. received approval from the Department of Energy (DOE) to go ahead with its Farm-In Agreement and Deed of Assignment with DESCO, Inc.
This will allow DESCO to aquire 80 percent undivided participating interest in the rights, interest, privileges, duties and obligations in the Iriga Geothermal Service Contract (GSC) in Camarines Sur.
DESCO will also cover 100 percent of the expenditure for the geophysical survey and all other activities required to bring the Iriga GSC to drilling. The company will also shoulder the costs to drill the first well.
However, both will answer for the costs of succeeding construction and production facility costs. Basic Energy and DESCO formed a partnership in December 2015.
DOE awarded the Iriga service contract to Basic Energy on February 26, 2013. The companies formed a partnership in 2015.
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