Galoc oil field operator Otto Energy expanded its asset base in the Philippines, saying it had formally obtained government permission to explore Service Contract 73 off Mindoro.
In a report, it said it would start reprocessing existing seismic data “with a minimum financial commitment of $500,000 within an initial period of 18 months.”
There is existing 2D seismic data set of over 3,000 kilometers covering the block.
Otto Energy said the award reflected the Australian firm’s expertise in the Philippine oil and gas industry.
“The addition of this new exploration acreage is consistent with our strategy to build an integrated exploration, development and production company focused on South East Asia and East Africa. Service Contract 73 has the potential to restock our existing, high impact, exploration prospect inventory,” company CEO Gregor McNab said.
SC73 is an offshore block in the southern part of the Mindoro Basin-Cuyo Platform, a continental rift basin offshore the Philippines, Otto Energy said. The area covers 8,440 square kilometers with water depths ranging from 328 feet to 4,265 feet.
The petroleum prospects identified in SC73 consist of reef build-ups, fault blocks, and anticlines (rock arches), Otto Energy said.
Oil has been discovered through an extended production test conducted in 1994 at certain wells near the block. “The occurrence of oil seepages in the Mindoro Island region also confirms the presence of an active petroleum system in the area,” the company said.
Otto Energy operates the Galoc oil field (SC14C), which provides cashflow. The Australian firm also operates SC51 onshore Leyte and SC69 offshore Visayas (near Cebu and Leyte), which are both under exploration and development. It also has a stake in BHP Billiton-led SC55 in offshore Palawan, which is under exploration and development.