GPC Grabs Greater Stake in Galoc, Rubicon Mobilizes to Restart FPSO

Otto Energy advised that Galoc Production Company (GPC) has entered into an agreement to acquire an additional 1.55% working interest in the Galoc Oil Field (Service Contract 14 Block C1).

This acquisition increases GPC's working interest in the Galoc Field from 58.29% to 59.84%. As a result Otto's indirect interest in the Galoc Project will increase by 0.49% to 18.77%.

The acquisition follows the decision by GPC, to acquire the interests of minority partners, PetroEnergy Resources Corporation and Alcorn Gold Resources Corporation, along with a number of the other partners in the project. The completion of acquisition of the increased working interest is subject to the execution of the formal agreements by all participating joint venture partners.

Additionally, Otto reported that the FPSO contractor, Rubicon, has mobilized equipment to the Galoc field to reinstate production. A further offtake from the FPSO occurred this week.