Red Emperor Completes Otto Energy Farm-in Agreement
Red Emperor Resources revealed Monday that its farm-in agreement with Otto Energy Limited has been completed, following a formal notification of approval from the Department of Energy of the Republic of the Philippines.
Under the farm-in agreement with Otto Energy Limited, Red Emperor will earn a 15 percent working interest in Block SC55, offshore the Philippines, by participating in the upcoming Hawkeye-1 exploration well. Government approval was the final condition which had to be met to complete the agreement, which was first announced on March 2, 2015.
Greg Bandy, Red Emperor’s managing director, commented in a Red Emperor Resources statement:
“The company is delighted to have received formal approval from the Philippines government and thanks them for their support. We also wish to thank shareholders for their patience with respect to this approval and look forward to updating them on the progress of this highly anticipated drilling campaign over the coming weeks.”
The Hawkeye-1 exploration well aims to “test the significant hydrocarbon potential of the Southern Palawan Basin”, according to a Red Emperor press release. Otto has informed Red Emperor that the mobilization of the Maersk Venturer (UDW drillship) to the Hawkeye-1 well remains on schedule to take place at the end of the month, with drilling operations to commence soon after. The well is targeting a structure assessed to contain in excess of 100 million barrels of gross best estimate prospective resources.
SC55 was awarded to Otto Energy, formerly NorAsian Energy, in 2005. Otto is the operator of the block and its partners at the site comprise Palawan 55 and Red Emperor. Following Red Emperor’s 15 percent farm-in agreement, the Philippine National Oil Company has also expressed interest in a 15 percent share of SC55, according to Otto Energy’s website.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- PNOC EC to Invest $182M in Philippines Oil, Gas Projects in 2016 (Apr 07)
- Red Emperor Completes Otto Energy Farm-in Agreement (Jul 27)
- Philippines DOE awards SC75 in the Palawan Basin to a Philex-Led JV (Jan 06)
Company: Otto Energy more info
- Philippines DOE Grants Moratorium on Palawan Basin's SC55 Work Program (Jun 17)
- Otto Launches Legal Action Against Swala Over Tanzania's Pangani License (May 13)
- Otto Energy Updates on Drilling at SM-71 #1 Discovery in the Gulf of Mexico (Apr 27)
Company: Red Emperor Resources NL more info
- Australia's Red Emperor Updates on its Philippines, Georgia Assets (Jan 29)
- Hawkeye-1 Well Reaches 8,740 Feet (Aug 10)
- Otto Energy Spuds Hawkeye-1 Prospect in SC 55 Offshore Palawan Basin (Aug 03)