Otto Energy Ltd advises that it has received confirmation from farm -in partner, BHP Billiton, that it has issued a termination notice for the Transocean Deepwater Expedition drillship due to the vessel not passing key acceptance tests .
BHP Billiton has advised that it is progressing preparations to commence drilling the Cinco well and will provide an update on rig status when available. Service Contract 55 is currently in Sub-Phase 4 which requires the drilling of the Cinco-1 deepwater well by 5 August 2012. The date for commencement of drilling of the Cinco well is yet to be confirmed.
In December 2011, Otto Energy Ltd executed the final farm‐in agreements supporting BHP Billiton’s earlier decision to enter into Service Contract 55, Offshore Palawan, Philippines.
SC55 contains both carbonate and sandstone reservoir targets in a variety of settings. The Cinco and Hawkeye prospects provide an indication of this diversity of play type and represent drill mature prospects in the present portfolio.
[mappress] Offshore Energy Today Staff, January 18, 2012