SC 55 Joint Venture Gets Green Light to Revise Work Program, Budget

Otto Energy, through its wholly-owned subsidiary NorAsian Energy Limited, advised that the Philippine Department of Energy (DoE) approved the request of Service Contract (SC) 55 joint venture partners to revise the Work Program and Budget for the current exploration sub-phase.

The joint venture now has until August 2010 to complete a combined 2D/3D seismic program and has until August 2011 to drill one deep-water well. In addition, the DoE also approved work program revisions to Service Contracts 50 and 51. Two wells will have to be drilled in SC 50 by March 2011; and one exploration well in SC 51 is now scheduled prior to December 2010.

SC55 is a deepwater block covering an area of 9,000km2 in the southwest of the Palawan Basin. SC50 contains the Calauit and Calauit South Oil Fields in the northeast of the Palawan Basin. SC 51 is situated in the East Visayan Basin in the central Philippines. Otto’s other offshore permit SC69 did not require a revision.