8 January 2008
Manager of Company Announcements
Australian Securities Exchange
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement
Galoc Oil Field Development Update
Australian based oil & gas company Otto Energy (ASX: OEL) is pleased to release
the attached announcement from the Galoc Production Company, operator of the
Galoc Field Development offshore Philippines.
Otto has an indirect 18.28% interest in the Galoc field via a 31.38% shareholding in
Galoc Production Company W.L.L. (“GPC”) which holds a 58.29% working interest in
the Galoc Oil Field. A subsidiary of the Vitol Group (“Vitol”) owning the remaining
stake (68.62 %)
Commenting on the release Alex Parks CEO of Otto Energy said
“We are pleased
that the two Galoc development wells have now been successfully drilled. The
provisional analysis of the data, suggests both wells have exceeded pre drill
expectations, however this will be confirmed during the clean up flowing of the wells,
later this month and during start up of production in late March”
For Otto Energy shareholders who would like to remain informed of the progress of
the Galoc Project, please refer to the GPC website and the regular releases on the
Philippines Stock Exchange at
www.galoc.com and www.pse.org.ph/ respectively.
Yours faithfully
_________________
Alex Parks
CEO
For further information please contact:
Alex Parks (CEO) Jill Thomas / John Williams
Otto Energy Professional Public Relations
Ph: +61 8 9226 0001 Ph: +61 8 9388 0944
Galoc Production Company WLL
#13-01 The Heeren
260 Orchard Rd
Singapore 238855
Tel: 65 6248 5360, Fax: 65 6248 5370
20080103 – Press Release – G3 Target Depth Page 1 of 2
08 January 2008
Galoc Field Development – Galoc 3 Well Target Depth Reached
Galoc Production Company W.L.L., the Operator of Galoc Field offshore Palawan,
Philippines, is pleased to advise that G3 which is the second of the 2 development
wells, has reached the target measured depth of 4,185m. Completion of the G4
and G3 wells will now be undertaken according to the batched well construction
programme with well clean up following late this month. On Completion of the
well construction activity, installation of subsea equipment will be undertaken to
arrival and hook up of the FPSO.
First oil is expected to be Late March 2008.
Registered Office
: National Bank of Bahrain Tower, 18th Floor (181),
Building 113, Government Avenue, Manama Town 316, Bahrain
Registered Branch Office
: 3/F 111 Paseo de Roxas Bldg,
Paseo de Roxas cor. Legaspi Sts., Legaspi Village, Makati City, Philippines
Galoc Production Company WLL
#13-01 The Heeren
260 Orchard Rd
Singapore 238855
Tel: 65 6248 5360, Fax: 65 6248 5370
20080103 – Press Release – G3 Target Depth Page 2 of 2
Additional Notes
The Galoc field is located in Service Contract SC14-C (Galoc Sub Block) in 290m
of water approximately 65km north west of Palawan in the Republic of the
Philippines. The development involves the construction of two subsea completed
horizontal production wells, with extended reservoir contacts, tied back to a
Floating Production Storage and Offloading (“FPSO”) facility via a short seabed
pipeline and mid-water riser system. Most likely oil reserves are estimated to be
approximately 10 million barrels. The reserves estimate and requirement for
additional wells and facility capacity will be reassessed following an analysis of
results from both development drilling and initial field production performance.
The participating interests in the Galoc Field are as follows:
Participant Participating Interest %
Galoc Production Company W.L.L. (Operator) 58.29
Nido Petroleum Philippines Pty Ltd 22.28
The Philodrill Corporation 7.02
Oriental Petroleum & Minerals Corporation/
Linapacan Oil Gas & Power Corporation
7.58
Forum Energy Philippines Corporation 2.27
Alcorn Gold Resources Corporation 1.53
PetroEnergy Resources Corporation 1.03
Further information on GPC and the Galoc Field can be obtained from:
•
GPC’s website www.galoc.com
•
via email at enquiry@galoc.com
•
or by contacting
Jeff Davison, Chief Operating Officer
Tel: +65 6248 5360
Registered Office
: National Bank of Bahrain Tower, 18th Floor (181),
Building 113, Government Avenue, Manama Town 316, Bahrain
Registered Branch Office
: 3/F 111 Paseo de Roxas Bldg,
Paseo de Roxas cor. Legaspi Sts., Legaspi Village, Makati City, Philippines