Otto: Production Resumed at Galoc Field

Otto advised that production has resumed at the Galoc Field at circa 8,500 barrels of oil per day. This follows reinstatement of the Mooring and Riser System (M&RS) which was disconnected on October 22, as a consequence of Typhoon Megi.

In addition to re-instatement of the M&RS, the opportunity presented by the shutdown has been used to undertake maintenance of the FPSO which included refurbishment of the thrusters. This work was undertaken at Batangas in the Philippines.

Galoc Production Company ("GPC") also advises that arbitration proceedings have been initiated in order to resolve issues relating to a dispute with a contractor and costs arising from production shutdowns.

Off take #18 was undertaken on 5th November and 240,000 barrels were delivered on November 11.