Basic Energy Corporation (BSC) was originally incorporated as Basic Enterprises, Inc. on September 19, 1968 and became an oil and gas exploration and development company on April 26, 1971, assuming a new name, Basic Petroleum and Minerals, Inc. Over the years, BSC evolved from an operating company to a holding company under the corporate name, Basic Consolidated, Inc. In 2007, in line with the inclusion among its primary purposes the production of ethanol and other biofuels, and the development of other alternative and renewable energy sources, the Company changed its corporate name from Basic Petroleum Corporation to Basic Energy Corporation.
The Company has investments in biofuel production, oil and gas exploration, and geothermal energy.
The Company bought Zambo Norte Bioenergy Corporation (ZNBC) in July 10, 2007 and changed its corporate name to Basic Biofuels Corp. (BBC). BBC plans for an integrated ethanol production plant in Gutalac, Zamboanga del Norte. The Company later established Basic Ecomarket Farms, Inc. (BEF) to undertake cassava project as feedstock for the ethanol plant. This is the Company’s response to the Biofuels Act of 2006 and to the optimistic view on biofuels during the time.
In the September 2011 quarterly report of the Company, they suspended the operations of BEF because the cassava yields were not enough to justify a commercial operation. Since the ethanol plant depends on the development of the feedstock operations, no further investments were made to BBC.
Oil and gas exploration
The company has interests in the following service contracts:
SC 47 (Offshore Mindoro) 1% interest
SC 53 (Onshore Mindoro) 3% interest
SC 41 (Sulu sea) .4413% effective interest
On April 3, 2006, the Company entered into a sale and purchase agreement (SPA) with Forum Energy (FEP), a subsidiary of Philex petroleum (PX). In June 5, 2008 the Company declared FEP default. On May 11, 2011, FEP & BSC signed a settlement agreement where FEP will pay $650,000 cash, convey 50% interest of FEP’s participating interests in Galoc, Nido, Matinloc and North Matinloc and 50% share in the historical cost recoveries of the oil assets.
On June 21, 2012, BSC signed a Compromise Agreement (Agreement) with FEP where FEP is to do the following: 
- Pay $ 2,399,392.73 for the remaining balance of $10 million
- Settle $1 million within six months from date of execution of Agreement
- Settle another $1 million within 18 months from date of execution of Agreement
Geothermal Energy Operations
On July 10,2008, geothermal energy service contract for exploration and development covering 3,481 ha in the Calumpa Peninsula in Mabini Batangas was awarded by the DOE to the Company. The Company had then committed to invest $3.15 million for initial exploration activities.
The 5-year contract has phase 1 (yr. 1 & 2) and phase 2 (yr. 3) to determine the drilling locations. Based on the company’s initial assessment, the site has a potential of 20 MW. According to the company, the site can be developed within 2 years and has the advantage of being adjacent to transmission lines and strong electricity demand in the area. As of March 24, 2011, the company commissioned Filtech Energy Drilling Corporation for the prefeasibility study. 
On September 21, 2011, the Company signed a memorandum of understanding with Altus Transactional Services for a joint development of business opportunities in renewable energy projects.
On September 23, 2011, the Company signed a head of agreement with Geoenergy Incorporated to jointly develop BSC’s Mabini Geothermal Energy project. After the heads of agreement, Geonergy shall have the right to acquire 70% participating interest in the farm-in agreement for funding 100% of the exploration cost up to the drilling of one exploration well. 
In October 11, 2011, BSC incorporated Basic Geothermal Energy Corporation.
In December 16, 2011, the company signed a Memorandum of Understanding (MOU) with Energy 2035 Ltd., an Australian company engaged in the development of renewable energy in Australia, with a primary purpose to jointly engage in business opportunities for the development of renewable energy both in the Philippines and outside of their respective territorial areas. 
The geothermal power plant project of the Company is the most promising to deliver substantial revenue, which I expect to be online come the last quarter of 2015. The Company had been prudent in spending stockholder’s money by signing a heads of agreement with Geoenergy, thus limiting the risk exposure of the Company albeit at the price of lesser return in the future. The geothermal project of the Company is a factor to watch for because the feasibility of the geothermal project appears to be not yet considered in BSC’s share price.
- Settlement Agreement with Forum Energy Plc. Re: settlement of disputes on issues arising from Service Contracts, http://www.pse.com.ph/resource/disclosures/2011/pdf/dc2011-3516_BSC.pdf
- Execution of Compromise Agreement with Forum Energy Plc re: share purchase agreement, http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-4768_BSC.pdf
- Engagement of services of Filtech Energy Drilling Corporation re: Pre-Feasibility Study of Mabini Geothermal Energy Project, http://www.pse.com.ph/resource/disclosures/2011/pdf/dc2011-2192_BSC.pdf
- Signing of Heads of Agreement with Geoenergy Incorporated re: Mabini Geothermal energy Project, http://www.pse.com.ph/resource/disclosures/2011/pdf/dc2011-6901_BSC.pdf
- Execution of Memorandum of Understandin with Energy 2035 Ltd., http://www.pse.com.ph/resource/disclosures/2011/pdf/dc2011-8675_BSC.pdf
Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell.