MANILA, Philippines - Otto Energy Ltd., an energy company listed in the Australia, is planning further drilling activities at the Galoc oil field in offshore Palawan late this year or early 2015.
In a disclosure to the Australian Stock Exchange, Otto said the company expects further activities after initial drilling activities yielded successful results.
“Before the end of 2014 or early 2015, a recommendation is anticipated regarding further activities to unlock the upside potential of the Galoc mid-field area and/or to undertake additional drilling and infill activities to complement existing production at the central field area,” Otto said.
Early this year, Otto started a series of activities to incorporate its Phase 2 drilling results to a detailed analysis of the Galoc oil field.
The company said drilling activities in the early part of the year resulted in a clearer understanding of the structure and reservoir distribution between the Galoc central field area and the Galoc mid and Galoc north areas.
Thus, Otto expects to complete further studies by the fourth quarter of the year.
Otto chief executive officer Matthew Allen said the company is optimistic on moving into further development activities.
“The potential to significantly add to the current Central Field Area 2P reserves from the Galoc Mid and North Areas, as well as additional incremental volumes from further Central Field Area infill drilling, is very exciting and we look forward to completing the current round of studies and moving into further development activities at this high-value producing field,” Allen said.
He said so far, the Galoc oil field has delivered over two million barrels in eight months since the second phase of the drilling project started in December 2013.
The company said seven cargoes have been delivered in Southeast Asian refineries since the start of the year. By the end of the year, there would be three more cargoes to be delivered.
“Otto expects a further three cargos will be delivered in the second half of 2014. A total of 10 cargoes will be delivered for the full year,” the company said.
The Galoc oil reserve is at estimated 25 million barrels with the second phase development completed. The second phase development allowed production at the
Galoc field to increase to around 9,700 barrels per day from about 5,000 to 6,000 barrels per day.