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Otto Energy Updates on Operations at Galoc Phase II Development in SC14C

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Otto Energy Limited, as 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 Service Contract (SC) 14C, part of the Galoc Phase II development project approved in 2012.

Progress

During the period from 0600 hours (AWST) Sept. 18 to 0600 hours (AWST) Sept. 25, successfully completed running of the G-5H lower completion and continued operations to run the upper completion and assembly on G-5H.

Forward Plan

The forward plan is to complete running of the G-5H and G-6H upper completions and assemblies and to rig up for the well clean-up flow to surface for 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 40.4 miles (65 kilometers) North West of Palawan Island and 217.5 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 5,830 feet (1,777 meters) of horizontal completion in the G-5H well and 4,557 feet (1,389 meters) of horizontal completion in the G-6H well. 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 Skansen 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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