Australia’s Otto Energy Ltd is preparing to spud Hawkeye-1 exploration well offshore the Philippines.
Namely, the company issued Maersk Drilling with formal notice in respect of the mobilisation of the Maersk Venturer drillship to the Hawkeye-1 exploration well location. Otto executed a binding contract with Maersk Drilling to secure the drillship for Hawkeye-1 well in May 2015.
According to Otto, mobilisation to the drilling location will start on July 31, 2015 and is expected to take around 1 to 2 days, with drilling operations to start upon arrival of the rig on location.
Otto said it continues to field interest regarding potential Hawkeye-1 well farm-in opportunities.
The company noted a recent Philippines Stock Exchange announcement and associated press reporting of an offer by Pryce Gases Inc, an LPG distributor whose parent company, Pryce Corporation is listed on the Philippines Stock Exchange, to farm-in for a 10% working interest in SC55 and the Hawkeye-1 exploration well. Otto said that negotiations are incomplete and the current offer by Pryce is not capable of acceptance. Otto is fully funded for the drilling of Hawkeye -1.
Furthermore, the expression of interest from the Philippine National Oil Company – Exploration Company (PNOC-EC) to farm-in for a 15% interest in SC55 is still valid and approvals from the Office of the President are required before this transaction can be finalised.
Joint Venture partners in Hawkeye Prospect are: Otto Energy Investments Ltd (Operator) (Wholly owned subsidiary of Otto Energy Ltd) with 33.18% interest; Otto Energy Philippines Inc with 45% interest; Red Emperor Resources with 15% and Palawan55 Exploration and Production Company with 6.82% interest.
Greg Bandy, Red Emperor’s Managing Director, commented, “News that formal notice for the mobilisation of the Maersk Venturer drill ship has now been issued by the Operator is extremely positive.
“The Hawkeye-1 well should now spud in early August, making the next few months very exciting for Red Emperor and its shareholders. We look forward to updating the market in due course on progress.”