Perth, July 24, 2008 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) provides an update on the riser replacement and reconnection operations at the Galoc Oil Field.
Otto holds an 18.3% indirect interest in the field via a 32% shareholding in the operating company Galoc Production Company (GPC), which holds a 58.29% working interest in the Galoc Field.
GPC has informed the joint venture that replacement riser parts for the section of the riser that was damaged during typhoon FengShen have arrived at Galoc.
Currently the Mooring and Riser System is being recovered to the surface and a thorough inspection and pressure testing of the umbilical will be carried out. The riser replacement and reconnection operations will then be undertaken.
For further information please refer to the attached Media Release from GPC.
Galoc Field Development - FPSO Reconnection
Galoc Production Company (GPC), the Operator of the Galoc Field offshore Palawan, Philippines, advises that, following disconnection of the FPSO from the Mooring and Riser System which was necessary due to typhoon Frank (FengShen) subsequent inspection of the subsea components by Remote Operated Vehicle (ROV) has revealed damage to one of the upper riser sections. Replacement riser sections have been mobilized from Singapore by our FPSO contractor and have arrived in the field onboard a support vessel for the replacement operation.
The Mooring and Riser System is being recovered and surface inspection and pressure testing of the umbilical will be carried out. The riser replacement and reconnection operations will then be undertaken. An additional vessel equipped with a work class ROV spread has been mobilized to assist our FPSO contractor in completing these activities.
The on-going inspection, reinstatement and reconnection activities involve several delicate, inter-related operations the results of which will influence the timing of First Oil, now anticipated to be early August.
Additional Notes
The Galoc field is located in Service Contract SC14-C (Galoc Sub Block) in 290m of water approximately 65km north west of Palawan in the Republic of the Philippines. The development involves the construction of two subsea completed horizontal production wells, with extended reservoir contacts, tied back to a Floating Production Storage and Offloading ("FPSO") facility via a short seabed pipeline and mid-water riser system. Most likely oil reserves as estimated at time of commitment to the development in 2006, is approximately 10 million barrels. The reserves estimate and requirement for additional wells and facility capacity will be reassessed following an analysis of results from both development drilling and initial field production performance.
The participating interests in the Galoc Field are as follows:
-----------------------------------------------------Participant Participating Interest % -----------------------------------------------------Galoc Production Company W.L.L. (Operator) 58.29 Nido Petroleum Philippines Pty Ltd 22.28 The Philodrill Corporation 7.02 Oriental Petroleum & Minerals Corporation/Linapacan Oil Gas & Power Corporation 7.58 Forum Energy Philippines Corporation 2.27 Alcorn Gold Resources Corporation 1.53 PetroEnergy Resources Corporation 1.03-----------------------------------------------------
Contact
Media / investor enquiries:
Jill Thomas
TEL: +61 8 6467 8803
thomas@ottoenergy.com
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