by Albert Castro

Oil exploration and energy company Trans-Asia and Energy Dev’t. Corp. is budgeting P20 million in the next two years to identify new projects for possible development.

Francisco Viray, president of Trans-Asia, said the capital expenditure will cover oil and minerals exploration, and power generating capacity expansion.

Trans-Asia is aggressive in its energy generation business, and is particularly eyeing growth from its oil and power ventures in the next five years.

The company is a holder of rights for several of the Philippines’ service contracts for oil explorations and is currently searching for oil on these areas in partnership with a foreign company.

It also holds a number of power plants, which deliver electricity to some provinces and economic zones and serve as source for cash flows to fund its other ventures.

Viray said Trans-Asia’s growth in power ventures will be fueled by a combination of asset acquisition and development of a greenfield project to improve the company’s total power capacity.

Trans-Asia is a participating bidder for the government’s Palanpinon power plant, which the Power Sector Assets and Liabilities Management Officer (Psalm) is set to auction by second half of the year.

Trans-Asia, at the same time, is currently identifying the location of a 20- megawatt-capacity power plant while confirmatory works are being done to determine the actual capacity for a prospective wind power plant in Guimaras.

"We are looking at a $2 million per megawatt spending. Based on what we have in the pipeline, maybe this year we may start constructing 20MW. We’re still looking for the site. So the initial investment will come as we go along," Viray said.

"We are in the process of doing the wind measurement and then go to the pre-feasibility study. The potential is about 20MW also. Maybe by the end of the year, we may zero in on the actual capacity. Construction will start two years from now. We still have to do and finance the feasibility study, the financing cost study," Viray said on the wind power project.

In oil explorations, the company’s partner Nor Asian Energy Ltd. has committed to complete two well drilling in Trans-Asia’s SC 51 (East Visayas) and SC 55 (West offshore Palawan) exploration areas by March and August 2009 respectively, though exploratory works have already begun.

Meanwhile, Trans-Asia is looking to reactivate the operation of SC 6 (Cadlao area in Northwest Palawan) site which in 1991 before it was closed had an oil output of close to 1,000 barrels per day.

Trans-Asia is also looking for positive results of two whole drillings to be done in the company’s mine site in Jose Panganiban, Camarines Norte.

Viray said the 333-hectare site is a potential source of gold, uranium, molybdenum and other metals.

The areas were the former mine site of Philippine Iron Mines, Inc. which produced iron and copper until the mid-1970s.

"In our MPSA in Jose Panganiban in Camarines Norte, we are doing exploration program and if the exploration shows promise, then we will be able to proceed and hopefully be able to find partners to get investment for the final activity," Viray said.

The first phase of the exploration has a budget of P4 million, he said. "The venture has given the company more predictable cash flow than in speculative oil. While we continue to participate in oil exploration, the company is tempered by sense of prudence by the factor of risk in exploring oil," Viray said.