Oil Surfaces at Otto Energy’s Galoc-6H (Philippines)

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

During the period from 0600 hours (AWST) on 16th October 2013 to 0600 hours (AWST) on 21st October 2013, the subsea tree installation, well clean-up and flow test operations were successfully completed on the Galoc-6H well.

The Galoc-6H well has successfully flowed oil to surface from the Galoc Clastic Unit (GCU) with the well flowing at a stable rate of 3,800 barrels per day (“bopd”) on a 56/64” choke setting with a flowing tubing pressure (“FTP”) of ~570 psi. Operations were conducted via the drilling rig “Ocean Patriot” and oil was flared at the location.

The initial oil deliverability potential from Galoc-6H under normal field operating conditions is expected to be between 4,000 and 6,000 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.

The forward plan is to secure the Galoc-6H well ready for hook-up operations due to take place through November. This completes the infield drilling operations phase of the Galoc Phase II project and the drilling rig will pull anchors and demobilise to Singapore.

The Galoc field is located in Service Contract SC14C (Galoc Sub Block) in 290 metres of water approximately 65km North West of Palawan Island and 350km 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 in November 2013.

Press Release, October 21, 2013

 

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