Australian firm Otto Energy Ltd. has secured a one-year extension for its sub-phase work program for Service Contract 55, enabling the firm to continue drilling activities within this highly prospective oil and gas block off West Palawan.
In a regulatory filing, Otto Energy announced that the Department of Energy (DOE) had granted the extension of Sub Phase 4 up to Dec. 23, 2015.
This development was significant for the company as it has been undertaking preparations for the drilling of the Hawkeye prospect next year.
“Securing the Department of Energy extension of Sub Phase 4 is an important step in progressing our exploration program in this high impact area. The combination of the excellent prospects of SC55 and the funding arrangement secured enables Otto to offer a very attractive exploration opportunity as part of a farm-out campaign. We look forward to providing an update on these discussions in the near term,” said Otto Energy chief executive officer Matthew Allen.
The exploration firm also reported that it was continuing looking for quality joint venture partners to participate in the drilling of the Hawkeye-1 exploration well.
Planning and preparation for the drilling of Hawkeye in 2015, including initial steps for the acquisition of critical path long lead items, has commenced recently.
Otto Energy holds a 93.18-percent interest in SC 55, while the remaining 6.82 percent is owned by Palawan55 Exploration and Production Corp., a subsidiary of publicly listed Trans-Asia Oil and Energy Development Corp.