Otto Concludes Drilling Activities of Galoc Phase II Project

Otto Energy Limited (“Otto”), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development project approved in 2012.

During the period from 0600 hours (AWST) on 11 September 2013 to 0600 hours (AWST) on 18 September 2013, drilled the G-5H well 8½” hole horizontally to a final total depth of 4,497 metres and commenced running the completion liner and assembly.

This marks the successful conclusion of the major drilling activities of the Phase II project with remaining drilling rig based operations being for well completions and installation of subsea trees. The G-5H and G-6H wells have been drilled to a combined total of 3,177m through horizontal reservoir section within which a significant 1,645m of net oil pay has been encountered. Data recorded during drilling shows high reservoir permeability in both wells which suggests good production deliverability will be achieved. Well deliverability will be confirmed when the wells are flowed to surface in the coming weeks for the well clean-up operations.

Planned upgrades to the FPSO Rubicon Intrepid, which will process the additional Phase II production, have also been successfully completed this week according to schedule. Delivery of subsea equipment and mobilisation of installation vessels are all on schedule to allow final tie-in work to be completed consistent with planned first oil from the G-5H and G-6H wells in November 2013.

Press Release, September 18, 2013