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.
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