Otto Energy Limited (ASX:OEL)
Perth, May 13, 2009 AEST (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) has been advised by the field operator, Galoc Production Company WLL (GPC), that production from the Galoc oil field recommenced as of 1030hrs local time.
Both Galoc 3 and Galoc 4 wells are on line and flowing with combined flow rate of approximately 13,000bopd.
Production has restarted following the reconnection of the FPSO 'Rubicon Intrepid' to its mooring and riser system approximately 6 days after shutting in and disconnecting during the passage of Severe Tropical Storm Emong. The mooring and riser systems were all inspected and integrity tested prior to the recommencement of production.
The Galoc Oil Field is located in SC14C off the west coast of Palawan in the Philippines.
Otto holds a 31.38% shareholding in the Galoc Production Company (GPC) which has a 58.29% working interest in the licence and is Operator.
Please refer to the GPC press release below for more information.
-ENDS-
GPC is pleased to confirm that production of the Galoc Field recommenced at 10:30 AM local time following reconnection of the FPSO Rubicon Intrepid to the Mooring and Riser System (M&RS). Disconnection had been undertaken due to adverse conditions associated with the recent severe tropical storm - Chan-Hom (Emong) which passed to the north of the Galoc Field last Thursday 7th May.
The reconnection operation was initiated over the weekend once conditions had subsided sufficiently and was concluded with integrity testing of the system prior to recommencement of production. Connection of the secondary hold back mooring will be undertaken over the coming day or so.
This completes the first disconnect and reconnect cycle of the enhanced mooring arrangements that were installed in January / February this year. Such operations are likely to be undertaken on several occasions over the coming southwest monsoon / typhoon season which lasts from June to November in a typical year.
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(a subsidiary of Nido Petroleum Limited) 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---------------------------------------------------------
Galoc Production Company is owned by;
Vitol Group 68.6%Otto Energy Limited 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
-ENDS-
Contact
Jill Thomas
Investor Relations Manager
Tel: +61-8-6467-8803
Email: thomas@ottoenergy.com
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