Otto Energy continues to focus on its Philippines-based portfolio of high quality exploration assets, complemented by oil production from the Galoc field.

Production

Since the start-up of production in October 2008, the Galoc oil field has produced a total of 7.54 million barrels of crude oil as of 30th June 2011, and delivered 22 offtakes to refinery customers. As at the end of the June 2011 quarter, the field was producing around 6,750 barrels of oil a day

Otto, through its shareholding in the field operator Galoc Production Company, has commenced pre-planning activities for the further development of the Galoc field with a decision on Phase 2 due to be taken in early 2012.

Exploration and Development

Interpretation of the recently acquired 3D seismic from Service Contract 55, offshore Palawan, has matured the amplitude-supported Hawkeye Prospect and a series of large Nido level carbonate prospects. The permit contains a significant number of high quality, large volume prospects that are being quickly matured for drilling by Otto and its partners. The JV has recently elected to enter the next permit sub-phase which requires a commitment well to be drilled prior to August 2012.

Corporate

The Board is currently finalising negotiations for the appointment of a new CEO and will advise the market accordingly once completed.

Tags: Otto Energy Limited