West Perth-based Otto Energy Ltd has stepped into the producer ranks after first production from its Galoc oil project offshore Philippines.
Below is the announcement:
Otto Energy is pleased to announce that production has commenced at the Galoc Oil Field, located in SC14C northwest Palawan, offshore Philippines.
Highlights:
- Production commenced from Galoc 3 (the first of two wells) at 10.45am local time on 9 October 2008.
- The second production well, Galoc 4, will commence production in the next few days as scheduled.
Once both wells have been brought on stream, well testing which will involve periods of flowing and shut in of each well will be undertaken. Then both wells will be brought on stream at a stable rate for long term production. More information on the production rates will be announced as it becomes available.
Please refer to the attached press release from the Operator, Galoc Production Company W.L.L. ("GPC") and the Philippines Department of Energy, for more information.
Otto holds a 31.38% shareholding in GPC, which holds a 58.29% working interest in the Galoc oil field, giving Otto an 18.28% indirect interest in the field.
Mr Alex Parks, CEO of Otto said, "We are very pleased to have first oil from Galoc. I'd like to congratulate GPC and the Philippines DoE and thank them for the concerted effort to have reached this important milestone."
"This is Otto's first production asset and transforms the Company from pure explorer to explorer and producer. I would like to thank our shareholders for their patience and continued support particularly during the last few months; we look forward to building to full production rates in the coming weeks and using the cash flow to fund our very promising exploration programs."
