Otto Energy Looking to Secure Suitable Rig for Galoc Exploration (Philippines)

Otto Energy Limited, as Operator of the producing Galoc oilfield Joint Venture offshore the Philippines, provides the following update on studies that have recently been undertaken on the further exploration potential at the Galoc field.

Studies undertaken since new high resolution 3D seismic data was acquired in 2012 have supported the potential for a further 12 MMbbls of recoverable oil (mean recoverable success case) from areas not currently under production or planned to be bought into production with the current drilling campaign.

The field has produced over 10 MMbbls of oil with a further 11 MMbbls (1P) and 15 MMbbls (2P) to be developed through the existing Phase I infrastructure and current Phase II development campaign.

The near field exploration potential is supported by seismic data acquired and reservoir production history both of which have significantly de-risked further exploration. The Ocean Patriot drilling rig which has been contracted for the Galoc Phase II drilling campaign is rated to a 400 metre water depth, and is not capable of drilling some of the optimal well locations for a Galoc exploration well.

Therefore the Joint Venture has made the decision to defer exploration drilling from this current campaign and will incorporate the results from the Phase II drilling campaign into plans for further exploration drilling.

Otto Chief Executive Officer Gregor McNab said: “The outcome of the Galoc exploration studies has been very positive and reinforces our view that this field continues to outperform expectations. We look forward to progressing drilling of a Galoc exploration well at the preferred drilling location as soon as a suitable rig can be secured. In the meantime, Otto Energy looks forward to safe execution of the Galoc Phase II project, drilling of the Duhat-2 well and acquisition of seismic in our two Tanzanian blocks over the coming months.”

[mappress]

Press Release, June 20, 2013