Otto Energy Expects First Oil from Galoc Phase II in November

Otto Energy Limited, as operator of the producing Galoc oilfield joint venture offshore the Philippines, provides 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) Aug. 14 to 0600 hours (AWST) Aug. 21, drilled the G-6H 8.5 inch hole section to 12,986 feet (3,958 meters) through the Galoc reservoir interval. The well intersected a 853 feet (260 meters) section of very high quality reservoir which was at the high end of prognosed outcomes. The well subsequently drilled through poorer sections of formation and the decision was made to total depth (TD) the well early to ensure successful completion across the high quality reservoir. The 5.5 inch completion liner has now been run over the high quality reservoir section. The well is currently being suspended prior to running the upper completion and well clean-up flow.

Forward Plan

The forward plan is to move the Ocean Patriot (mid-water semisub) to the G-5H well and drill the 8.5 inch hole horizontally for approximately 7,874 feet (2,400 meters) through the reservoir interval prior to running the completion liner and assembly.

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.

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 in November 2013.


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