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Sunday, 20 July, 2008, 02:40 GMT | more prices >>

Galoc take to drive Otto’s Philippine bit



By Upstream staff 

Australia’s Otto Energy, a partner in the Galoc offshore project in the Philippines, said it planned to drill up to 10 exploration wells in the country in the next three to five years, funded by revenues from Galoc.

The new wells will be drilled by its wholly-owned local unit, NorAsia Energy.

Otto said it expected first oil to flow from the Galoc project late next month, adding net revenue of $12 million per month to the company’s results. Otto said it expected its take from the project to drop to $5 million per month once costs were recovered under the operating company’s agreement with the Philippine government.

Otto Energy chief Alex Parks said: “Otto intends to pay off past costs from development of the Galoc oil field within the first few months of production and then we will use additional cash flow to fund further exploration and development of our other global assets - with a big push initially in the Philippines - where we believe there are big opportunities for exploration success.”

The company said it was seeking farm-in partners for a 2009 offshore drilling programme in the country.

Otto has interests in four Service Contract (SC) areas in the Philippines, SC14C, SC50, SC51, and SC55, covering a total of 16,938 square kilometres.

The company said it was carrying out further studies on the onshore SC51 North area, in which it holds an 80% interest, to back up existing seismic. It hopes to start drilling on prospects in the area late this year or early next year.

Otto said it had also further delineating the Calauit and Calauit South discoveries in the SC50 area, in which it holds an 85% stake, using 3D seismic shot over the field in 2007. It said it was now seeking a farm-in partner for the area and co-operating with other operators in the area to charter a jack-up rig to drill a new Calauit well in 2009.

Otto is also seeking farm-in partners to share risk on the 85%-owned ultra-deepwater SC55 block and on the SC51 South Area.

It is also making carrying out environmental impact studies and consulting with local communities ahead of possible drilling in the East Visayan Basin Area 8 block, in which it holds a 70% stake.


Friday, 28 March, 2008, 02:26 GMT  | last updated: Friday, 28 March, 2008, 02:26 GMT

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