Otto Energy Updates on Galoc II Drilling
Otto Energy Limited, as operator of the producing Galoc oilfield joint venture offshore the Philippines, provided the following update on the Galoc-5H and Galoc-6H drilling campaign in SC14C, part of the Galoc Phase II development approved in 2012.
During the period from 0600 hours (AWST) July 10 to 0600 hours (AWST) July 17, drilled the G-6H 12.25 inch hole section to 8,379 feet (2,554 meters). The well has been steered to near horizontal, ready for commencement of drilling the long (approximately 6,562 feet or 2,000 meters) horizontal productive section through the reservoir. 9.625 inch casing operations have commenced. Logs obtained while drilling have confirmed that the well has penetrated the oil bearing Galoc reservoir sandstones in line with the pre-drill prognosis.
The forward plan is to complete setting and cementing the 9.625 inch casing on G -6H prior to moving to the G-5H well to drill the 12.25 inch hole through to reservoir at approximately 8,379 feet (2,500 meters) Measured Depth (MD), then run and cement 9.625 inch casing.
Location and Proposed Depth
The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 951 feet (290 meters) of water approximately 40 miles (65 kilometers) North West of Palawan Island and 217 miles (350 kilometers) south of Manila in the Republic of the Philippines. The Galoc-5H and Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10 million barrels of production since the field was commissioned in 2008. Otto is drilling the wells using the Ocean Patriot (mid-water semisub).
The wells are being batch drilled in 1,020 feet (311 meters) of water. It is planned that the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 7,185 feet (2,190 meters) with approximately 6,561 feet (2,000 meters) of horizontal completion. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up.
After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandia Hercules construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.
First oil from the Phase II wells is expected during 4Q 2013.
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