Basic Energy reduces stake in downsized ethanol project

LISTED BASIC Energy Corp. said it has opted to reduce its stake in the proposed integrated ethanol plant of ZN Biofuels Partners, Inc. after plans were downsized.

Basic Energy reduced to 106 million shares its original stake of 120 million shares after the proposal to build a 6,000-hectare ethanol plant was reduced by 300 hectares, a disclosure to the stock exchange said.

The plant will be built in Gutalac, Zamboanga del Norte, where Basic Energy has 6,000 hectares of leased land, part of which will be used for a sugarcane plantation.

Basic Energy entered into an agreement in April 2007 to acquire ZN Biofuels’ interest in Zambo Norte Bioenergy Corp., a company engaged in the production of biofuels and other alternative and renewable energy sources.

Basic Energy is also involved in various oil exploration activities, through wholly owned subsidiary Southwest Resources, Inc.

Source:bworldonline