Otto Energy Ltd., an Australia-based oil and gas exploration company, will use part of its $100 million earnings from the Galoc oil field to finance its drilling activities this year.
Alex Parks, Otto Energy chief executive officer, said the company will fund its planned exploration wells through a combination of their share of profits from the Galoc project and equity from farm-in partners.
He said the company plans to drill one well for each of Service Contracts 50, 51 and 55.
SC 50 covers the Calauit oil field, SC 51 involves the Argao and Cabilao prospects in Cebu while SC 55 covers the Marantao prospect in western Palawan.
“We plan to drill one well in each of SC 50, 51 and 55 before the middle of 2009. We are actively talking to rig companies and hope to announce drilling dates by July this year,” Parks said.
Otto Energy hold 31.38 percent in Galoc Production Co., the lead operator in the Galoc oil field (under SC 14), which is expected to release its first oil production by next month.
Otto Energy, through its 100 percent owned subsidiary NorAsian Energy Ltd., said the Marantao prospect or SC 55 holds strong potential. SC 55 covers 900,000 hectares and is the first ultra deep-water block awarded by the Department of Energy.