Ocean Patriot to Begin Work at Galoc-6H Well in SC14C Shortly

Otto Energy Limited, as operator of the producing Galoc oilfield joint venture offshore the Philippines, provided the following update Wednesday on the Galoc-5H and Galoc-6H drilling campaign in SC14C.


During the period from 0600 hours (AWST) Oct. 9 to 0600 hours (AWST) Oct. 16, the subsea tree installation, well clean-up and flow test operations were successfully completed.

The Galoc-5H well has successfully flowed oil to surface from the Galoc Clastic Unit (GCU) with the well flowing at a rate of 6,300 barrels of oil per day (bopd) on a 64/64 inch choke setting with a flowing tubing pressure (FTP) of ~830 pounds per square inch (psi). Operations were conducted via the Ocean Patriot (mid-water semisub) and oil was flared at the location.

The initial oil deliverability potential from Galoc-5H under normal field operating conditions is expected to be between 8,000 and 12,000 bopd with final operating rates to be set according to optimum facility and reservoir management constraints. The results from this flow test are in line with the forecast overall field production rate of 12,000 bopd to be delivered once Phase II is brought in to production in late November 2013.

Forward Plan

The forward plan is to move to Galoc-6H, install the subsea tree and commence clean-up and flow testing prior to releasing the rig.

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 217.5 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 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.

After drilling of both Galoc-5H and Galoc-6H is completed, the DOF operated Skandi Skansen 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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