Otto Energy Concludes Drilling Phase of Galoc II Development Project

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 Service Contract (SC) 14C, part of the Galoc Phase II development project approved in 2012.


During the period from 0600 hours (AWST) on Sept. 11 to 0600 hours (AWST) Sept. 18, drilled the G-5H well 8.5 inch hole horizontally to a final total depth of 14,753.9 feet (4,497 meters) and commenced running the completion liner and assembly.

This marks the successful conclusion of the major drilling activities of the Phase II project with remaining drilling rig based operations being for well completions and installation of subsea trees. The G-5H and G-6H wells have been drilled to a combined total of feet 10,423.2 feet (3,177 meters) through horizontal reservoir section within which a significant 5,396.9 feet (1,645 meters) of net oil pay has been encountered. Data recorded during drilling shows high reservoir permeability in both wells which suggests good production deliverability will be achieved. Well deliverability will be confirmed when the wells are flowed to surface in the coming weeks for the well clean-up operations.

Planned upgrades to the FPSO Rubicon Intrepid, which will process the additional Phase II production, have also been successfully completed this week according to schedule. Delivery of subsea equipment and mobilization of installation vessels are all on schedule to allow final tie-in work to be completed consistent with planned first oil from the G-5H and G-6H wells in November 2013.

Forward Plan

The forward plan is to run the G-5H completion liner and assembly and rigging up for the well clean-up flow to surface for both the G-6H and G-5H wells.

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 by the Ocean Patriot (mid-water semisub) 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 5,830 feet (1,777 meters) of horizontal completion in the G-5H well and 4,557 feet (1,389 meters) of horizontal completion in the G-6H well. Drilling is expected to take approximately 115 days including the flowing of the wells for clean-up.


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