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PetroEnergy Announces Updates on Maibarara, Nabas Energy Projects

Pasig–(PHStocks)–PetroEnergy Resources Corporation (PSE: PERC) has announced the following developments in its Renewable Energy Projects:

1. 20MW Maibarara Geothermal Power Project

Maibarara Geothermal Inc. (MGI) has received on 17 February a Certificate of Endorsement (COE) from the Department of Energy (DOE) declaring the Maibarara Project to be consistent with the Government’s Power Development Plan (PDP). On 19 January 2012, MGI likewise duly executed a Memorandum of Agreement with the DOE for the establishment of the ER 1-94 trust accounts for the one-centavo per kWh financial benefits accruing to the host communities of the Maibarara Project (ER 1-94 MOA).

Both the COE and the ER 1-94 MOA are material requirements for the issuance by the Energy Regulatory Commission (ERC) of a Certificate of Compliance (COC) to a generation company prior to commercial operations.

The issuance of the COE and the execution of the ER 1-94 MOA are positive indicators that the permitting process for the Maibarara Project is progressing as scheduled towards its targeted commercial operations date in October 2013. Development of the site by MGI where the 20MW power station will be erected has reached 85% completion as of 17 February.

MGI is a joint venture corporation that is 65% owned by PERC’s wholly owned subsidiary, PetroGreen Energy Corp. (PGEC), and 25% and 10% owned by Trans-Asia Oil and Energy Development Corp. and PNOC Renewables Corp., respectively.

2. Nabas Wind Energy Project (Nabas Project)

On 9 February 2012, the National Commission on Indigenous Peoples (NCIP) Region VI/VII issued a Certificate of Non-Overlap (CNO) for the Nabas Project. The CNO confirms that there are no existing ancestral domain claims within the 2,000 hectare service contract area. The CNO is among the material requirements for a power project’s Declaration of Commerciality.

The Nabas Project, being undertaken by PGEC for the DOE, intends to operate a 40-50 MW wind power plant to supply electricity to the Visayas Grid by 2014. The project is currently in its third year of feasibility studies, and final investment decision awaits the ERC approval for the Feed-in-Tariff for Renewable Energy projects.

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