Perth, Sep 19, 2008 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) announce an update on the development of the Galoc Oil Field by the Operator, Galoc Production Company W.L.L. ("GPC").
Otto has a 31.38% shareholding in GPC, which holds a 58.29% working interest in the field. This gives Otto an 18.28% indirect interest in the Galoc oil field.
The Galoc Oil Field is located in Service Contract 14C, offshore northwest Palawan, Philippines.
Galoc Field Development
Galoc Production Company (GPC), the Operator of the Galoc Field offshore Palawan, Philippines, is pleased to advise the subsea component on which the corroded fittings had been discovered has been recovered to the surface, the fittings replaced and successfully tested. Re-installation of the component will be undertaken as soon as there are suitable weather conditions in the offshore field. The remaining activities are expected to take 6-8 days given suitable conditions.
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) 58.29Nido Petroleum Philippines Pty Ltd 22.28The Philodrill Corporation 7.02Oriental Petroleum & Minerals Corporation/Linapacan Oil Gas & Power Corporation 7.58Forum Energy Philippines Corporation 2.27Alcorn Gold Resources Corporation 1.53PetroEnergy Resources Corporation 1.03-----------------------------------------------------
Further information on GPC and the Galoc Field can be obtained from:
- GPC's website www.galoc.com
- via email at enquiry@galoc.com
- or by contacting
Jeff Davison, Chief Operating Officer
GALOC
Tel: +65 6248 5360
Contact
Jill Thomas
Investor Relations Manager
Tel: +61 (8) 6467 8800
Mobile: +61 439 440 016
Email: thomas@ottoenergy.com
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