Otto Energy Limited (Otto) announced Tuesday that the Phillippines Department of Energy (DOE) has acknowledged a variation to the work program timing for Service Contract 55 in the southwest of the Palawan Basin, offshore Philippines following the delayed issuance of the Strategic Environmental Plan clearance from the Palawan Council for Sustainable Development in 2012/13.
The revised timing for work program commitments is now as follows:
- Sub-Phase SP4: Work Program – Drill 1 deepwater well, Revised Work Schedule – Aug. 6, 2011-Dec. 23, 2014
- Sub-Phase SP5: Work Program – Drill 1 deepwater well, Revised Work Schedule – Dec. 23, 2014-Dec. 23, 2016
This represents an extension of approximately 14 months.
Otto is several months into a farm-out process to introduce a new joint venturer to participate in the drilling of the Hawkeye-1 exploration well. Otto is targeting suitably qualified participants with deepwater operations experience to join the exploration program. Several suitable companies with Southeast Asia operations have commenced technical due diligence reviews of available data. Formal submissions have been requested in June 2014 and Otto will evaluate any proposals with the intention to complete the farm-out process and secure a new joint venturer shortly thereafter.
Otto is pleased with the response from potential joint venturers and the progress of the farm-out campaign.
Otto CEO Matthew Allen said: “Securing the Department of Energy acknowledgement for the varied work program timing following the force majeure period in 2012/13 is an important step in progressing our exploration program in this high impact area. The combination of the excellent prospectivity of SC55 and the funding arrangement secured by Otto means we are able to offer a very attractive exploration opportunity as part of a farm-out campaign. We look forward to securing a new venturer by mid-2014.”