Otto Energy Limited has received $21.3 million due from BHP Billiton Petroleum in relation to the recently completed Hawkeye-1 well drilling offshore the Philippines.
According to Otto Energy’s press release issued on Thursday, the initial payment represents the bulk of the contribution by BHP Billiton of up to $24.5 million towards the cost of the Hawkeye-1 well.
The company said that the final payment would be received in Q4 2015 once the total well cost is confirmed.
In addition, Otto has made a final payment of $7 million to Great Bear Petroleum to earn an 8% and 10.8% working interest in two areas of Alaskan North Slope acreage held by Great Bear Petroleum.
Otto’s Managing Director, Matthew Allen said: “Completion of the Hawkeye drilling operations ahead of schedule and below budget has left Otto with a very strong balance sheet. Otto currently has over $30 million in available funds to pursue our growth strategy, this represents over A$0.04 per share in cash backing.”
“The amounts referenced above include the recent final payment of $7 million to Great Bear Petroleum. Otto has secured an attractive entry into the prolific Alaskan North Slope oil province which gives Otto shareholders the opportunity to participate in a material exploration and appraisal program in the forthcoming two winter operational seasons. Otto also has a fully funded exploration drilling program in Tanzania in 2016, including the drilling of the exciting Kito prospect.”