Otto Lines Up Rig for Exploratory Drilling in Philippines

Otto announced that its subsidiary Norasian Energy Phils. recently signed a land rig contract with DESCO for exploration drilling in Service Contract 51. DESCO's Rig-1 will be used to drill the Duhat-1 exploratory well in Northwest Leyte on the northern block of the Service Contract.

Barring any unforeseen delays, drilling is expected to commence by early March of 2011 and will take approximately 27 days to complete.

The Duhat-1 well is designed to reach a total vertical depth of 1,000m. It will test the hydrocarbon potential of the San Isidro anticline, primarily in Miocene Tagnacot Formation limestone and sandstone targets where a resource potential has been identified of 1 to 62 million barrels recoverable oil.

The drilling of the Duhat-1 well was approved by the SC51 Joint Venture and the Philippines Department of Energy and will satisfy the work commitment under the 3rd sub- phase of the Service Contract.