Otto Energy on Friday announced that approval from the Philippines Department of Energy has been received for an extension to the SC-51 current Sub-Phase until 31 January 2013. This extension has been approved to allow completion of the acquisition, processing, and interpretation of the present 2D seismic program.
Acquisition of 63 miles (102 kilometers) of new 2D seismic data over the San Isidro anticline was completed in early October 2012. Processing of these data is progressing.
The next Sub-Phase commencing 1 February 2013 requires the drilling of a well, planning for which has already commenced. 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.
Under the terms of a pre-existing farm-in agreement, Otto will pay 100 percent of future costs through to drilling of the Duhat-2 exploration well to earn the full 80 percent working interest.
SC51 North Block is located onshore the island of Leyte in the Philippines. Otto is focused on maturing the Duhat prospect located on the San Isidro anticline that was drilled with the Duhat-1/1A well in 2011. During the drilling of this well, oil and gas indications were observed and the presence of an active petroleum system, a working seal and a structure conducive to hydrocarbon entrapment were proven. The Duhat structure is mapped to have mean in place volume (STOIIP) of 76 million barrels.
This acquisition is consistent with Otto’s strategy of building an integrated petroleum company, generating a sustained flow of drilling events, focusing on South East Asia and onshore East Africa. Higher equity in SC51 North Block creates further balance between our onshore and offshore assets.
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