Ann: Update on Joint Ventures in Peru , page-2

http://businessmirror.com.ph/home/companies/32434-edc-decides-not-to-pursue-project-in-chocopata-peru

EDC decides not to pursue project in Chocopata, Peru
THURSDAY, 06 SEPTEMBER 2012 20:55 PAUL ANTHONY A. ISLA / REPORTER
LISTED Energy Development Corp., the country’s largest geothermal producer, said on Thursday it will not proceed with the Chocopata geothermal project in Peru.

In a disclosure to the Philippine Stock Exchange, EDC said it will still proceed with other opportunities in Peru—in joint venture agreement with Hot Rock Ltd. of Australia.

EDC said they have made the decision not to pursue the Chocopata project based on the results of the initial geoscientific surveys.

EDC and Hot Rock earlier signed an agreement to codevelop the Quellaapacheta and Chocopata projects in Peru. The Philippine company holds a 70-percent interest in both projects.

“Having reviewed all the data, in our view it is not technically attractive,” EDC president Richard Tantoco told reporters.

Tantoco added that “we are still looking at Quellaapacheta and working hard to build up the portfolio of concession areas,” he added.

EDC earlier said it dropped the Calerias and Longavi projects in Chile after deploying a full team of geothermal scientists to conduct the initial geoscientific surveys early this year.

The Calerias and Longavi projects are covered by EDC's Chilean joint-venture agreement with Hot Rock Ltd. of Australia on February 2, 2012 and by the Longavi shareholders agreement dated May 2, 2012.

Erudito Recio, EDC investor relations manager, said they decided not to pursue the Chile projects, and that they will look at other geothermal projects.

“We have three areas in Chile acquired on our own and will be working on. Also, we have a business development team in Chile looking for already-owned prospects available for possible joint venture or even acquisition in Chile. The same team will handle developments of business opportunities in the other Latin American countries,” Recio said.

Tantoco earlier said EDC exercised its right to withdraw from the Chile concession areas “after we assessed that the sites are not commercially viable.”

At these early stages of exploration, he added, it is typical that not all sites explored are found to be commercially viable.

EDC is engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of the geothermal power plants with an aggregate capacity of 1,130 megawatts.