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Friday, 09 January, 2009, 01:10 GMT | more >>

Otto joy at Calauit cash



By Upstream staff 

Australian junior Otto Energy said its farm-in partner Canadian player Vital Resources has arranged $5 million in financing which will be used to develop the Calauit oilfield, in the Philippines.

Vital's agreement with PetroNext Energy Development Fund is subject to final documentation with PetroNext, Otto said.

Vital agreed to a farm-in to Otto's three licences off the Philippines - SC 50, in the north-west Palawan basin, which holds Calauit,, SC 51 in the Visayas basin and SC 55, an ultra deep-water block in the south-west Palawan basin.

The Canadian outfit will earn a 35% stake in Calauit by paying for 60% of the estimated $20 million it will cost to get the field on stream.

Calauit holds an estimated 39.4 million barrels of oil in place, of which 6.44 million barrels are believed to be recoverable.


Wednesday, 15 November, 2006, 10:12 GMT  | last updated: Wednesday, 15 November, 2006, 10:12 GMT

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