Otto Energy Ltd has continued to focus on its Philippines-based portfolio of high quality exploration assets,complemented by oil production from the Galoc field.
Galoc production during the quarter of 618,244bbl gross of crude oil (116,106 bbl net to Otto), with 88%12 month rolling uptime for the field.
Exercise of farm-in option by BHP Billiton in SC55 and Otto (through its wholly-owned subsidary NorAsian Energy Ltd) lodgement of notice to enter drilling exploration sub-phase.
Completion of Duhat-1/1A exploration well drilling provides strong support for follow up in SC51.
Completion of 210 km2 high quality 3D seismic acquisition over Lampos and Lampos South prospects in SC69.
Galoc joint venture approval in July 2011 to install an improved mooring and riser system upgrade Rubicon Intreped, crucial to progressing Phase 2 field development.
Since the start of production in October 2008, the Galoc Production Company WLL (GPC), has produced total of 7.54 million barrels of crude oil as of June 30, 2011, and delivered 22 takeoffs to refinery customers. Asat the end of the June 2011 quarter, the field was producing around 6,750 barrels a day. Otto, through its shareholding in the field operator Galoc Production Company WLL (GPC), has commenced pre-planning activities for further development of the Galoc field with a decision on Phase 2 due to be taken in early 2012.
Exploration and Development:
Interpretation of the recently acquired 3D seismic from Service Contract 55, offshore Palawan, has matured the amplitude-supported Hawkeye prospect and a series of large Nido level prospects. The permit contains a significant number of high quality, large volume prospects that are being quickly matured for drilling by Otto and its partners. The JV has recently elected to enter the next permit sub-phase which requires a commitment well to be drilled prior to August 2012.
Corporate: The Board is currently finalising negotiations for the appointment of a new CEO and will advise the market accordingly once completed.
Service Contract Maps:
OTTO EXPLORATION UPDATE HIGHLIGHTS:
SC55 Offshore Palawan Hawkeye 3d seismic firms the Hawkeye prospect to mean success volumes of 680 mmbls (STOIIP). SC55 has Total Mean (Unrisked) Oil In Place of 2.25 Billion barrels.
SC55 also shows a prospective gas cap of 2TCF on the Hawkeye prospect.
SC69 Offshore Visayan 2D seismic confirms the presence of Lampos and Lampos South prospects witha combined mean success volumes of 292mmbls (STOIIP)
SC69 and SC51 Total Visayan Acreage show a Total Mean (Unrisked) Oil In Place of 900 million barrels. The Lampos and Lampos South prospects are analogous to the largest discovered field in the Philippines - Malampaya.
SC51 Onshore Visayan to drill Duhat-1 well in the first quarter of 2011 testing the Tagnacot formation with a mid case success volume of(STOIIP) 76mmbls.