12 June 2013
Manager of Company Announcements
ASX Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
GALOC-5H AND GALOC-6H DRILLING UPDATE Highlights:
• Weekly drilling update for Galoc-5H and 6H
development wells
Otto Energy Limited ("Otto") (ASX:OEL), as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development approved in 2012.
Progress
During the period from 1300 hours (AWST) on 4 June 2013 to
0600 hours (AWST) on 12 June 2013, the 36" (914mm) hole was drilled to 400 metres on G-6H and the 26" (660mm) hole was drilled to 400 metres on G-5H.
Forward Plan
The forward plan is to set the 30" (762mm) conductor on G-6H and open the G-5H hole to 36" (914mm) and set the 30" conductor also prior to drilling the 17½" (444 mm) hole to 950 metres on both wells.
OTTO AT A GLANCE
• ASX-listed oil and gas company with a strategy to grow its integrated oil and gas business across exploration, development and production
• Focused on South East Asia and East
Africa
• Operator of the producing Galoc oil field in the Philippines, which provides cashflow
• Opportunity rich with substantial exploration prospects and leads COMPANY OFFICERS
Rick Crabb Chairman
Ian Macliver Director Rufino Bomasang Director John Jetter Director Ian Boserio Director Gregor McNab CEO
Matthew Allen CFO/Coy Secretary
Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801
Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 [email protected] ASX Code: OEL ABN: 56 107 555 046
Figure 1: MODU Ocean Patriot being moored on field, taken from FPSO Rubicon Intrepid
--Ends--
Contact: Matthew Allen
Chief Financial Officer
+61 8 6467 8800 [email protected]
Media:
Dudley White
MAGNUS Investor Relations + Corporate Communication
+61 2 8999 1010 [email protected]
Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801
Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 [email protected] ASX Code: OEL ABN: 56 107 555 046
Location and Proposed Depth
The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 290m of water approximately 65km North West of Palawan Island and 350km south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10
MMbbls of production since the field was commissioned in 2008.
The wells are being batch drilled in 311 metres of water. It is planned that the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 2,190 with approximately 2,000 of horizontal completion. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up.
After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandia Hercules construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.
First oil from the Phase II wells is expected during Q4 2013.
Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801
Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 [email protected] ASX Code: OEL ABN: 56 107 555 046
APPENDIX A: SUMMARY
SC14C Galoc-5H and Galoc-6H Development Wells
|
Location
|
Palawan Basin, Philippines
|
Permit
|
SC14C
|
Well Type
|
Horizontal development wells
|
Target
|
Turbiditic sandstone in Miocene Galoc Classic Unit
|
Water Depth
|
Approximately 311 metres
|
Planned total depth
|
Approximately 2,190 metres vertical
Total drilled length approximately 5,000 metres for each well
|
Duration
|
115 days (including well clean-up flow)
|
Note: Depth is measured in metres below the rig rotary table or drilling floor
Joint Venture Partners:
Participant
|
Participating Interest %
|
Galoc Production Company W.L.L. (Operator)
(Wholly owned subsidiary of Otto Energy Ltd (ASX: OEL))
|
33.00000
|
Galoc Production Company No. 2 Pte Ltd
(Wholly owned subsidiary of Kuwait Foreign Petroleum
Exploration Company)
|
26.84473
|
Nido Production (Galoc) Pty Ltd
(ASX: NDO)
|
22.87952
|
Oriental Petroleum & Minerals Corporation and Linapacan
Oil Gas & Power Corporation
|
7.78505
|
The Philodrill Corporation
|
7.21495
|
Forum Energy Philippines Corporation
|
2.27575
|
Head Office 32 Delhi Street, West Perth WA 6005 Australia PO Box 1414, West Perth, WA 6872 Australia T: +61 8 6467 8800 F: +61 8 6467 8801
Manila Office 32nd Floor Philamlife Tower, 8767 Paseo de Roxas, Makati City 1226, Philippines T: +63 2 773 2700 F: +63 2 773 2801 [email protected] ASX Code: OEL ABN: 56 107 555 046