GPC Makes Reconnection Repairs on Galoc FPSO

Otto Energy has provided an update on the installation of the Hold Back Mooring System (HBMS) and repairs to the Mooring and Riser System (M&RS) at the Galoc Oil Field, located offshore Philippines, as advised by the Operator of the field, Galoc Production Company (GPC).

Substantial progress has been made with all repairs to the M&RS. This progress has resulted in the Rubicon Intrepid FPSO vessel now safely reconnected to the M&RS. The southwest portion of the HBMS has been installed and the FPSO will connect to the HBMS once final inspection of the HBMS is completed.

Present operations are testing systems on the FPSO, and the replacements of the final sections of the riser are expected to be complete in the forthcoming days. The northeast leg of the HBMS is to be installed.

At this time weather remains favorable and GPC advises that completion of the re‐instatement activities and re‐commencement of production is anticipated next week.

Otto will continue to liaise with GPC and provide an update to the market once production at Galoc has recommenced.

The Galoc Oil Field is located in Service Contract 14C off the west coast of Palawan in the Philippines. The development involved the construction of two subsea completed horizontal production wells, with extended reservoir contacts, tied back to a FPSO facility via a short seabed pipeline and mid water riser system. Most likely oil reserves as estimated at time of commitment to the development in 2006, is approximately 10 million barrels.

Otto holds a 31.38% shareholding in GPC which has a 58.29% working interest in the Galoc license and is the field Operator.