Otto announced that commerciality has been declared at the Galoc Oil Field and that the Company is now debt‐free.
Repayment of GPC Project Debt
In 2007, when Otto acquired its interest in Galoc Production Company W.L.L ("GPC"), it inherited a share of project finance debt facility already in place to fund the GPC portion of the development costs of the Galoc project. Primarily via receipt of production revenues, GPC has serviced the debt repayments and Otto's share of the debt (both non recourse and recourse portions) is now fully repaid. Otto now expects to receive regular dividend payments from GPC from production net proceeds.
Declaration of Commerciality -- Galoc Field
Under the terms agreed with the Philippine Department of Energy for the Galoc project, GPC on behalf of the Galoc Joint Venture has issued a formal "Declaration of Commerciality" following the completion of the extended testing period.
The data obtained during the extended test phase has proved invaluable in providing sufficient confidence of the reservoir performance to justify the commencement of long term production.
As a consequence of the declaration, the fiscal terms for the Galoc project revert to the standard terms of Service Contract 14.
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