Australian oil company to drill 5 new PHL wells

Australian energy company Otto Energy Ltd. is planning to drill five wells next year to expand its oil and gas portfolio in the Philippines.

 

Otto Energy reported in its latest investor presentation that two of these five are development wells that will be drilled in the Galoc oil field in northwest Palawan.  

 

The Galoc phase 2 development involves drilling and completing two 2,000 meter horizontal section subsea wells and the installation of a second production riser.

 

The Galoc phase two will deliver eight million additional reserves and increase current production to 12,000 barrels per day from 5,600 barrels per day to date.

 

Otto Energy holds a 33 percent direct ownership in the Galoc project through Galoc Production Co.

 

Galoc Production, holds a total of 59.8 percent of service contact 14-C (the Galoc oil field) while Nido Production Ltd. holds 22.88 percent, Oriental Petroleum & Minerals Corporation and Linapacan Oil Gas & Power Corporation, 7.785 percent; The Philodrill Corp., 7.214 percent and Forum Energy Philippines, 2.275 percent.

 

The Galoc field consortium is eyeing first oil to flow from the two new wells by the first half of next year.

 

Cinco-1 and Hawkeye prospects

 

Otto Energy, meanwhile, targets two exploratory wells under service contract 55 - the Cinco-1 and Hawkeye prospects. SC 55 is located near the Malampaya gas field in Palawan.

 

The Energy Department is hoping that the Cinco well in southwest Palawan can become the next Malampaya gas field if the development of the Recto Bank gets delayed.

 

BHP Billiton of Australia owns 60 percent of SC 55, Otto Energy, 33.18 percent and local firm Trans-Asia Oil and Energy Development Corp. with 6.82 percent.

 

SC 55 is estimated to have "a potential resource, reservoir equal or a little less than Malampaya." This translates to a potential resource of 2.2 trillion cubic feet of gas as compared to the Malampaya field's proven reserves of 2.7 TCF.

 

Duhat 2

 

The Otto Energy will also pursue the drilling of the Duhat 2 well under service contract 51. Duhat 2 is located in Leyte.

 

"SC-51 is a potentially high value, material opportunity with significant follow up prospectivity in the case of success. Otto’s recent equity increase to 80 percent is consistent with the emerging prospectivity of this area," the company said.

 

Otto Energy owns 80 percent of SC 51 while Trans-Asia Oil and Energy Development Corp., Alcorn Gold Resources Corp. and PetroEnergy Resources Corp. holds the remaining 20 percent.

 

The Duhat structure, according to Otto Energy, is mapped to have 76 million barrels of petroleum. — DVM, GMA News