AUSTRALIAN FIRM OTTO ENERGY LTD. IS eyeing three more prospects in the Galoc oil field in offshore Palawan, to further boost production.

Under the Galoc Phase 2 development options, Otto Energy said the consortium was targeting to increase 2P reserves by 5 million barrels of oil by drilling two new wells, which are estimated to yield about 4,000 barrels of oil per day.

These wells may be drilled in the northern portion of the Galoc structure to access undeveloped reserves.

Otto earlier said the Galoc oil field had another 8 million barrels in gross contingent oil resources in these two new wells. This was on top of the remaining reserves in the field, estimated at 8.4 million barrels as of end June.

Prior to the start of production in October 2008, oil reserves were estimated at 10 million barrels.

The Galoc consortium is expected to undertake seismic interpretation and preparation of drilling costs and schedule starting this year until 2010, Otto Energy said in a regulatory filing.

Otto holds a 31.38-percent stake in Galoc Production Co. WL, operator of the Galoc oil field.

Currently, the Galoc oil field is operating at a rate of 11,500 barrels of oil per day (bopd), down from its initial rate of 18,000 bopd. So far, operating expenses were estimated at $25 a barrel while Phase 1 capital expenditure stood at $13 per barrel.