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Ocean Patriot Completes Drilling Assignment at Galoc Oil Field in SC14C

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Otto Energy Limited, as operator of the producing Galoc oilfield joint venture offshore the Philippines, provided Monday the following update on the Galoc Phase II project in Service Contract (SC) 14C.

Progress

During the period from 0600 hours (AWST) Oct. 21 to 0600 hours (AWST) Nov. 4, the Galoc-6H well was secured and the Ocean Patriot (mid-water semisub) pulled anchors, demobilized to Singapore and is now off-hire. This marks the successful completion of all drilling activities of the Phase II development.

Forward Plan

The construction vessel arrived in the Galoc field area Nov. 1 and has commenced installation activities to connect the Galoc-5H and Galoc-6H wells into the floating production storage and offloading (FPSO) vessel Rubicon Intrepid. It is expected that these offshore installation activities will be completed before the end of November resulting in the first oil being produced from the FPSO Rubicon Intrepid. A further update will be provided upon the completion of the installation and commissioning activities in the field.

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 217.5 miles (350 kilometers) south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells were drilled within the existing producing field that has delivered over 11 million barrels of production since the field was commissioned in 2008.

The Galoc-5H and Galoc-6H development wells have been drilled to a total vertical depth of 7,185 feet (2,190 meters) with 5,830 feet (1,777 meters) of horizontal section in the G-5H well and 4,557 feet (1,389 meters) of horizontal section in the G-6H well.

After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandi Skansen construction vessel has commenced installation of 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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