Otto Energy Ltd provides an update on remaining oil reserves balances at the Galoc field as at 1 January 2011.
The Operator and 59.84% participant in the project, Galoc Production Company WLL, in which Otto is a 31.38% shareholder, annually commissions a review on behalf of the Galoc joint venture of the remaining oil reserves balance by independent firm RISC.
RISC has reviewed the Galoc field reserves in accordance with the SPE/WPC /AAPG/SPEE Petroleum Resource Management System (PRMS) definitions, guidelines and auditing standards.
Reported increases in reserves are attributable to better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. The Galoc field is expected to continue producing until approximately 2014 to 2018 on the basis of the existing two wells alone.
Contingent Resources of 0.85 MMboe (Otto share) at 2C level are attributable to Galoc Phase 2 development, currently under consideration by the Galoc joint venture.
Otto’s Managing Director Paul Moore said “The increased confidence in the Galoc field performance and underpinning reserves is supporting the efforts of the joint venture in progressing towards sanctioning a Phase 2 development, potentially comprising between one and three new wells, in the field”.
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Source:Otto Energy , May 5, 2011;