abce certificate
New Articles
Tuesday, 14 October, 2008, 18:20 GMT | more prices >>

Otto regains upper hand



By Upstream staff 

Perth-based Otto Energy has regained working interest in Philippines Service Contracts 50, 51 and 55, through negotiation with current joint venture participant Vital Resources, Otto said today.

Otto’s working interest will now revert to 99% in SC50, 80% in SC51, and 85% in SC55

Scaled down but in line with the original farm-in terms, Vital will retain a 1% working interest in SC50 (Calauit Field) by paying 2%.

In other changes to the farm-in terms, Vital will exit SC51and SC55 completely, with no refund or reallocation of payments made to date.

Otto will also hold Vital’s voting rights within the SC50 joint venture going forward.

“This situation creates an opportunity for Otto to use the current 2D and 3D seismic programs to add significant value to our blocks prior to negotiating a new farm-out deal pre-drilling,” Otto’s chief executive Alex Parks said,

“There has been a lot of recent interest in our acreage, and in the Philippines in general, with new entrants to the area including Exxon, Japex, Petronas, Tap Oil, Salamander Energy and Pearl Energy.

“I am confident Otto will be readily able to find one or more alternate farm-in participants for this prospective acreage while retaining advantageous terms for Otto and its shareholders.”


Wednesday, 20 June, 2007, 01:22 GMT  | last updated: Wednesday, 20 June, 2007, 01:27 GMT

New opportunity: for Otto chief Alex Parks
 

e-mail this article to a colleague


to email:  from:
comments: