Perth, Oct 30, 2008 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) is pleased to provide an update by Galoc Production Company (GPC), operator of the Galoc Field located offshore Palawan, regarding the sale of the first cargo of crude oil from Otto's first producing asset.
The sale of the first cargo has been agreed with Petron Corporation of the Philippines. The cargo quantity is 300,000 barrels of Palawan Light Crude Oil. This cargo is scheduled to be transferred from the FPSO to a tanker commencing on 6th November 2008.
Cargo loading is expected to take approximately 36 hours after which it will be delivered to Petron's refinery in Limay, Bataan.
There has now been 20 days of production from the Galoc Field during which time the average production rate has been 15,000 barrels per day. The next cargo is expected late November.
Attached is a copy of the press release issued by GPC today.
29 October 2008
Galoc Field - First Cargo
Galoc Production Company (GPC), operating the Galoc Field located offshore Palawan, is pleased to advise that sale of the first cargo has been agreed with Petron Corporation at internationally benchmarked prices.
The cargo of 300,000 barrels of Galoc crude oil is scheduled to be transferred from the FPSO to a tanker commencing on 07 November. Cargo loading is expected to take approximately 36 hours after which it will be delivered to Petron's refinery in Limay, Bataan, Republic of the Philippines.
There has now been over 20 days of production from the Galoc Field during which time the average production rate has been 15,000 barrels per day including approximately one week of commissioning and production testing. The FPSO Rubicon Intrepid has been performing well with minimal downtime. The next cargo is expected late November.
Petron Corporation is the largest oil refining and marketing company in the Philippines with a 180,000 barrel-per-day oil refinery. The company supplies nearly 40% of the country's total fuel requirements.
Additional NotesMini Assay on Palawan Light Units MiniWhole Crude :API Gravity oAPI 36.1Density @ 15 oC kg/l 0.844Total Sulphur wt.% 1.92Sulphur as Mercaptans ppm 24Total Nitrogen ppm 688Basic Nitrogen ppm 229Aniline Point oC 53.6Aniline Gravity Product 4638Pour Point oC <=-36Wax wt.% 4.3Butane and Lighter vol.%Reid Vapour Pressure psi 9.20Kin. Viscosity @ 40 oC cSt 2.263Kin. Viscosity @ 50 oC cSt 1.956Flash Point, Abel oC <25Gross Heating Value MJ/kg 44.91Nett Heating Value MJ/kg 42.15UOP Characterisation Factor 11.6Ash wt.% 0.091Asphaltenes wt.% 0.4Micro Carbon Residue wt.% 2.40Total Acid Number mg KOH/g 0.11Sediment wt.% 0.01Water vol.% <0.025Water and Sediment-D4007 vol.%Salt Content lb/1000Bbl 7Nickel ppm 4Vanadium ppm 2Iron ppm 25Arsenic ppb 9Mercury ppb 4
General Information
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 involved 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 initial field production performance.
The participating interests in the Galoc Field are as follows:
Participant Participating Interest %Galoc Production Company W.L.L.1 (Operator) 58.29Nido Petroleum Philippines Pty Ltd 22.28The Philodrill Corporation 7.03Oriental Petroleum & Minerals Corporation/Linapacan Oil Gas & Power Corporation 7.57Forum Energy Philippines Corporation 2.27Alcorn Gold Resources Corporation 1.53PetroEnergy Resources Corporation 1.031 Galoc Production Company is owned by;Vitol 68.6%Otto Energy 31.4%
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
- Jax Mariano
Tel: +63 918 9109581
Contact
Jill Thomas
Investor Relations Manager
Tel: +61 (8) 6467 8800
Mobile: +61 439 440 016
Email: thomas@ottoenergy.com
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