14 March 2013
Manager of Company Announcements
ASX Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
GALOC OIL FIELD RESERVES UPDATE Highlights:
Otto announces updated attributable Galoc oil field 1P Reserves of 3.4 MMstb and 2P Reserves of 4.3 MMstb.
Galoc has Reserves Replacement Ratio of 115% on the
Proved basis and 98% on the Proved & Probable basis.
Galoc oil field Reserves are expected to maintain production beyond 2020.
Otto expects increased production volume from Galoc Phase
II in 2H 2013.
[Galoc is one of three exploration events planned by Otto in CY2013 along with the Duhat-2 well and SC-55 prospect in the Philippines.]
Otto Energy Ltd ("Otto") (ASX: OEL) is pleased to provide an update on remaining oil reserve balances at the Galoc oil field in the Philippines as at 1 January 2013.
The operator of the Galoc oil field, Galoc Production Company WLL, is a wholly owned subsidiary of Otto. It has commissioned an
annual review of remaining oil reserves from RISK, an independent consulting firm.
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
RISC has reviewed the Galoc oil field reserves in accordance with the SPE, WPC, AAPG and SPEE Petroleum
Resource Management System definitions, guidelines and auditing standards.
The reported increases in reserves are attributable to better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. The Galoc oil field is expected to remain in production beyond 2020 based on the Galoc Phase I and Phase II well configuration.
A detailed breakdown of Reserves is shown in Appendix A.
Otto's Chief Executive Officer Mr Gregor McNab said "Galoc continues to be a key asset for Otto, delivering valuable cashflow to fund future growth opportunities. I look forward to the delivery of continued reliable production from existing operations and increased production volume from Galoc Phase II in 2H 2013. I am proud of Otto's continued growth as an integrated exploration, development and production company focused on South East Asia and East Africa."
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
---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]
Competent Persons Statement
The Reserve and Contingent Resource estimates outlined in this announcement have been compiled by Mr
Nick Pink. Mr Pink is the Senior Reservoir Engineer of Otto and a full time employee. Mr Pink has more than 14 years of relevant experience and is qualified in accordance with ASX Listing Rule 5.11. Mr Pink has consented to the form and context that this statement appears.
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: GALOC OIL FIELD RESERVES UPDATE
Estimated Ultimate Recovery (EUR) and
Reserves
|
1P
Proved
Reserves
|
2P
Proved and Probable Reserves
|
|
MMbbl
|
MMbbl
|
|
|
|
EUR at 1st July 2012
|
19.2
|
25.0
|
EUR at 1st Jan 2013
|
21.7
|
25.4
|
Change in EUR
|
13%
|
1%
|
Cumulative Production to 1st Jan 2013
|
9.9
|
9.9
|
Gross Field Reserves at 1st Jan 2013
|
11.7
|
15.4
|
PSC Contractor Entitlement Reserves at 1st
Jan 2013
|
10.2
|
13.1
|
Otto Net Entitlement Reserves at 1st Jan
2013
|
3.4
|
4.3
|
PSC Entitlement Reserves
|
1P
Proved
|
2P
Proved and
Probable
|
|
Gross
|
Net
|
Gross
|
Net
|
|
MMbbl
|
MMbbl
|
MMbbl
|
MMbbl
|
|
|
|
|
|
Entitlement Reserves 1st July 2012
|
8.9
|
2.9
|
13.4
|
4.4
|
Entitlement Production
|
(0.8 )
|
(0.3 )
|
(0.8 )
|
(0.3 )
|
Acquisitions
|
0.0
|
0.0
|
0.0
|
0.0
|
Additions (Upgrade to Phase 1 & 2)
|
2.1
|
0.7
|
0.5
|
0.2
|
|
|
|
|
|
Entitlement Reserves 1st Jan 2013
|
10.2
|
3.4
|
13.1
|
4.3
|
Reserves Replacement Ratio
|
115%
|
115%
|
98%
|
98%
|
1. EUR numbers do not include G-1 EWT production in 1988
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