3 August 2015
Manager of Company Announcements
ASX Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
HIGHLIGHTS:
• HAWKEYE-1 EXPLORATION WELL UPDATE
Otto Energy Ltd (ASX: OEL) ("Otto") provides the following update on the drilling of the Hawkeye-1 exploration well, offshore Palawan Basin in the Philippines as at 0600 hours (AWST) on 3 August 2015.
Progress
The Hawkeye-1 exploration well was spud at 1610 hours (AWST) on 31
July 2015. The 36" conductor was run to 1,906 metres and the 26" hole subsequently drilled to 2,449 metres. Current operations are to cement the 20" casing string.
Forward Plan
The forward plan is to connect the blow-out preventer to the
wellhead and pressure test before commencing to drill the 17 ½" hole
to just above the primary target reservoir.
The next update will be provided once the 12 ⅛" section is drilled into the primary target reservoir, anticipated to occur about two weeks from now.
The Hawkeye-1 exploration well will be plugged and abandoned upon completion of drilling and logging. All measurements are from the rig rotary table.
~Ends~
OTTO AT A GLANCE
• ASX-listed oil and gas company with a strategy to grow an integrated petroleum business through high impact exploration
• Focused on conventional oil plays in proven petroleum provinces
• Formerly Operator of the producing
Galoc oil field in the Philippines
COMPANY OFFICERS Rick Crabb Chairman Matthew Allen MD and CEO Ian Macliver Director
Rufino Bomasang Director John Jetter Director Ian Boserio Director Craig Hasson CFO
Neil Hackett Company Secretary
Contact: Matthew Allen
Managing Director and CEO
+61 8 6467 8800 [email protected]
Media:
Matthew Gerber
Citadel-MAGNUS
+61 2 8234 0113 [email protected]
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 [email protected] ASX Code: OEL ABN: 56 107 555 046
Appendix 1:Hawkeye Prospect
Service Contract 55 (SC55), offshore Palawan Basin in the Philippines, contains a number of distinct exploration play types that provide material opportunities, including: the carbonate gas/condensate trend that has the potential for an oil charge; and turbidite clastic prospects.
The Hawkeye prospect was identified on 2D seismic originally acquired by Otto in 2007 and further defined with the 600 km2 3D seismic acquisition in late 2009. Hawkeye contains:
• 'Best Estimate' STOIIP of ~ 480 MMbbl of oil; and
• 'Best Estimate' Net Prospective Resource of 65 MMbbl of oil.
Hawkeye is planned as a vertical exploration well to test the clastic late Miocene Pagasa formation. Hawkeye is a thrusted, four way closure with direct amplitude support evidenced on high quality 3D seismic acquired
in 2010. Otto plans an exploration well to target the crest of the Hawkeye structure and evaluate results. The well will be plugged and abandoned upon completion of drilling.
Otto has operated upstream oil and gas exploration and production assets in the Philippines for over 10 years and regards the fiscal terms as amongst the best in Asia, offering protection from low oil price outcomes.
Hawkeye Prospect
Areal Closure: 50km2
Hawkeye Flat Spot (DHI)
Second Flat Spot
(DHI)
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 [email protected] ASX Code: OEL ABN: 56 107 555 046
Joint Venture Partners:
Participant
|
Participating Interest %
|
Otto Energy Investments Ltd (Operator)
(Wholly owned subsidiary of Otto Energy Ltd)
|
33.18%
|
Otto Energy Philippines Inc.
(Wholly owned subsidiary of Otto Energy Ltd)
|
35.00%
|
Century Red Pte Ltd
(Wholly owned subsidiary of Red Emperor Resources NL (ASX RMP)
|
15.00%
|
Palawan55 Exploration and Production Company
(Wholly owned subsidiary of Trans-Asia Petroleum Corporation)
|
6.82%
|
Pryce Gases Inc
(Subsidiary of Pryce Corporation)
|
10.00%
|
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 [email protected] ASX Code: OEL ABN: 56 107 555 046