Otto Energy, a dynamic, growing oil and gas company that in four short years has assembled a balanced portfolio of international exploration and development assets today provides its quarterly activities report :
• Completed acquisition of remaining shareholding in Galoc Production Company WLL (GPC) from Vitol group.
• Galoc joint venture approved:
o Installation of an improved mooring and riser system for the FPSO Rubicon Intrepid o Acquisition of new 3D seismic over the Galoc oil field and adjacent Galoc North exploration prospect as part of the Phase II development
o Commencement of Front End Engineering and Design (FEED) for the Phase II development
• Work continues at SC55 with farm-in partner BHP Billiton, with a commitment well to be drilled prior to August 2012.
Corporate
Otto completed the acquisition of the remaining shareholding in GPC and increased its equity in the Galoc oil field to a 33% direct working interest. Effective 30 September 2011, Otto has assumed control of the operating company and immediately commenced activities to progress a proposed Phase II development at the Galoc oil field.
The Board is currently finalising arrangements for the commencement of a new CEO and will advise the market accordingly once completed.
Production
Since the start-up of production in October 2008, the Galoc oil field has produced a total of 8.14 million barrels of crude oil as of 30th September 2011, and delivered 24 offtakes to refinery customers. As at the end of the September 2011 quarter, the field was producing around 6,500 barrels of oil a day.
Otto, through its shareholding in the field operator GPC, has commenced pre-planning activities for the further development of the Galoc oil field with a decision on Phase II due to be made by mid-2012.
Exploration and Development
In Service Contract 55, the joint venture has elected to enter the fourth sub-phase which requires a commitment well to be drilled prior to August 2012. Planning has commenced for the drilling of an offshore deepwater well at the Cinco prospect in Q2 2012. Otto is working with farm-in partner BHP Billiton who is carrying Otto’s share of expenditure on the drilling of Cinco well, to determine the 2012 work program. BHP Billiton have the Transocean Deepwater Expedition, a 5th generation rig, under contract which will be utilised for the drilling of this well.
[mappress] Source:Otto Energy , October 31, 2011