Work Resumes at Galoc Oil Field After Passage of Super Typhoon Haiyan

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

Ongoing Operations

Super Typhoon Haiyan passed directly through the Galoc field area during the night Nov. 8 and early hours Nov. 9. During the storm, sea states and wind speeds were the most severe ever experienced at Galoc. Production from the field was suspended as a precautionary measure Nov. 8 and the floating production vessel was demanned to essential personnel only.

Following the storm, all personnel are safe and unharmed. A thorough inspection of both the floating, production, storage and offloading (FPSO) vessel and the subsea infrastructure confirmed that only minor damage has been sustained. Final system checks have been performed this morning and production has subsequently re-commenced.

Galoc Phase II

All support vessels and crew working on the Galoc Phase II development were evacuated from the field ahead of Super Typhoon Haiyan and were re-mobilized to the field progressively through Nov. 10. Equipment installation for the final stages of the Galoc Phase II project has also re-commenced.

Otto Energy CEO Gregor McNab said:

“The ferocity of Super Typhoon Haiyan has caused widespread devastation to many communities across the Philippines. Our thoughts are with those who have lost so much and we are working with our community partners to ensure Otto Energy provides much needed support.”

“I am particularly proud of our team who have worked through the exceptional challenges presented by Super Typhoon Haiyan and the critical role played by our operations team from both Otto Energy and Rubicon Offshore. The professionalism of these people combined with the integrity of the equipment has allowed us to endure this major typhoon with no harm to our people or environment and minimal impact to production. This underscores the value of our investment to upgrade the Rubicon Intrepid in early 2012.”

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