Otto wins new Philippines exploration block
Otto Energy has been handed an eight-year exploration service contract in Area
8 off the Philippines, the Australian company said today.
Otto said in a statement its wholly owned unit NorAsia and local partner
TransAsia Oil & Energy Development Corporation, were selected as winner of
Service Contract 69 from competitive bids in the Phillipine Energy
Contracting Round.
The company said more than 3000 kilometres of 2D seismic data had been shot on
the block, in the East Visayun basin, with over 20 potential structures
identified already.
The service contract covers about 7000 square kilometres between the islands
of Cebu, Bohol and Leyte.
Perth-based Otto said the contract lay between two sections of its 80%-owned
Service Contract 51 acreage, where it is preparing to drill the Argoa
contract based on 3D data.
“Area 8 is considered to be very prospective and holds potentially significant
value for Otto, particularly if we are successful in the adjacent SC51
block,” said Otto chief executive Alex Parks.
“We have secured the permit on a minimal work programme commitment, but plan
to execute a proactive exploration program based on the technical merits of
the area,” he said.
NorAsia and TransAsia are committed to five phases of exploration over the
eight year life of the contract to develop the contract, but have the option
to pull out at the end of each. The contract requires initial data gathering
and geological and geotechnical studies, followed by 2D and 3D seismic
survey and ultimately a firm commitment to drill at least one well on the
play.
The round was held in 2006 but only five contracts from the auctions were
handed out today. Other companies that were offered blocks after the round
have yet to receive service contracts, the Manila Times reported today.
The newspaper said the five contracts were handed to four local companies. In
addition to NorAsia, Burgundy Global was handed two service contracts in the
Sulu Sea south-west of Palawan and two of its subsidiaries, Miocene Mining
and Helios Petroleum, won acreage in the Cagayan basin and off the island of
Mindanao.
08 May 2008 05:39 GMT
| last updated:
08 May 2008 05:39 GMT
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