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Otto Continues to Drill Galoc-5H Well in SC14C off the Philippines

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Otto Energy Limited, as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides the following update on the Galoc-5H and Galoc-6H drilling campaign in Service Contract (SC) 14C, part of the Galoc Phase II development approved in 2012.

Progress

During the period from 0600 hours (AWST) Aug. 28 to 0600 hours (AWST) on Sept. 4, drilled the G-5H well 8.5 inch hole horizontally from 8,858 feet (2,700 meters) to 11,568 feet (3,526 meters). Results obtained from drilling logs indicate that the well is delivering in line with the pre-drill prognosis.

Forward Plan

The forward plan is to continue drilling the G-5H well 8.5 inch hole horizontally through the reservoir interval and run the completion liner and assembly.

Location and Proposed Depth

The Galoc field is located in SC14C (Galoc Sub Block) in 951 feet (290 meters) of water approximately 40 miles (65 kilometers) North West of Palawan Island and 217 miles (350 kilometers) south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells are being drilled by the Ocean Patriot (mid-water semisub) within the existing producing field that has delivered over 10 million barrels of production since the field was commissioned in 2008.

The Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 7,185 feet (2,190 meters) with approximately 6,561 feet (2,000 meters) of horizontal completion. Drilling 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 in November 2013.

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