Perth, Dec 17, 2008 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) has been advised by the field operator, Galoc Production Company W.L.L. (GPC) that there will be production downtime at the Galoc Oil Field following a disconnection of the FPSO late yesterday afternoon prompted by adverse weather conditions.
An ROV has been secured and weather permitting will be mobilised to the Galoc Field, by end of the week, to inspect the FPSO's mooring and riser system for any potential damage.
Otto will continue to liaise with GPC and update the market on the findings of the inspection and expected timing for production to recommence as more information becomes available.
Please refer to GPC announcement attached for further information.
Galoc Field - FPSO Disconnection
For operational reasons the production at the Galoc Field has been suspended to allow the FPSO Rubicon Intrepid to disconnect from the mooring and riser system. This disconnection was prompted by adverse weather and FPSO equipment availability.
At this time arrangements are being made to undertake an inspection of the mooring and riser system. This will be undertaken as soon as suitable ROV equipment is mobilized to the field and weather permits, nominally end of this week. The findings of the inspection will enable the need for any remedial action to be established.
Additional Notes
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 1.03-------------------------------------------------
1 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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