Australia's Otto gets extension of offshore service contract in Visayas

The Department of Energy (DOE) has extended by six months the exploration permit of Otto Energy Ltd., the operator of service contract 69 at the Camotes Sea in Eastern Visayas.

In a disclosure to the Australian Stock Exchange, the Australian firm said the DOE "has approved a six-month extension to the current Exploration Sub-Phase 3 of SC69 offshore [in] the Visayas."

"During the extension period, outstanding technical work will be completed, well planning will commence and a farm-down process will be undertaken," Otto said.

From May this year, the sub-phase 3 was extended to November 7, 2013 for the acquisition of 3D seismic data.

The deadline for the drilling of one exploration well will be from November 7, 2013 to November 7, 2014, while the drilling of another exploration well will be from November 7, 2014 to November 7, 2015.

Otto said the consortium acquired the 3D seismic data in 2011 which confirmed the  presence of three attractive potential drilling targets in the  most prospective portion of the block, namely Lampos, Lampos  South and Managau East.

It also said the results of the 3D seismic are encouraging and present a series of potentialtargets for the first well in the block.

"In the event of success in the first well, significant follow up targets have also already been  identified," Otto said.

Otto Energy holds 79 percent in SC 9 while Frontier Gasfields Pty Ltd holds 15 percent while Trans-Asia Oil and Energy Development Corp. holds 6 percent. — KBK, GMA News