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Otto Updates Drilling Ops at Galoc Phase II Development

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Otto Energy Limited (Otto), the operator of the producing Galoc oilfield joint venture offshore the Philippines, provided the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development approved in 2012.

Progress

During the period from 0600 hours (AWST) on June 12 to 0600 hours (AWST) on June 19, the 30 inch (762 millimeter)
conductor was set and cemented on G-6H and the 26 inch (660 millimeter) hole was opened to 36 inch (914 millimeter) on G-5H.

Forward Plan

The forward plan is to set and cement the 30 inch (762 millimeter) conductor on G-5H prior to drilling the 17.5 (444  millimeter) hole to 3,117 feet (950 meters) on both wells.

Location and Proposed Depth

The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 951 feet (290 meters) of water approximately 40 miles (65 kilometers) North West of Palawan Island and 218 miles (350 kilometers) south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10 million barrels of production since the field was commissioned in 2008.

The wells are being batch drilled in 1,020 feet (311 meters) of water. It is planned that the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 7,186 feet (2,190 meters) with approximately 6,561 feet (2,000 meters) of horizontal completion. Drilling by Ocean Patriot (mid water semisub) is expected to take approximately 115 days including the flowing of the wells for clean-up.

After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandia Hercules construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.

First oil from the Phase II wells is expected during 4Q 2013.

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