Basic Energy takes BDO as advisor for follow-on offering

Basic Energy Corp., formerly Basic Petroleum Corp., has signed an agreement with BDO Capital & Investment Corp. to be its financial advisor for its upcoming rights and follow-on offering, the company said in a statement on Monday. The offering will fund Basic Energy's business expansion, which includes the development and production of ethanol and other alternative and renewable energy resources. Basic Energy recently bought Zambo Norte BioEnergy Corporation (ZNBC), which will build an ethanol plant in Zamboanga del Norte that will produce 200,000 liters per day of ethanol by the latter part of 2009. ZNBC is leasing 10,000 hectares of land in Zamboanga del Norte where it will plant sugarcane to serve as the plant's feedstock. The company's entry into green energy is in anticipation of the huge demand for cleaner fuel as mandated by the Biofuels Act, which requires a 5-percent blending of bioethanol with gasoline by May 2009. - GMANews.TV