Otto begins Philippines drilling campaign

August 8, 2013

Otto Energy Ltd. is drilling two horizontal wells in the second phase of development at Galoc field offshore the Philippines.

The wells are being batch drilled in 311 m of water.  Otto projects the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 2,190 m with about 2,000 m of horizontal completion. Drilling is expected to take about 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 Skandia Hercules construction vessel will be used to install the subsea equipment and complete the hook-up of both wells to the FPSO Rubicon Intrepid.

The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 290 m of water about 65 km northwest of Palawan Island and 350 km 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 MMbbls of production since the field was commissioned in 2008.

First oil from the Phase II wells is expected during 4Q 2013.



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