Australian firm Otto Energy Ltd. is planning to drill as many as four new wells in four potentially oil-rich locations within the Galoc oil field off Palawan.
The plan is aimed at increasing the reserves and extend the life of the field.
In his presentation at the World Independent Junior Oil and Gas Congress Asia 2011 in Hong Kong, Otto Energy chief executive officer Gregor McNab said the drilling of the new wells might help unlock up to nine million barrels of contingent resources in the Galoc oil field.
Based on previous reports, the Phase 2 development of the Galoc field was initially expected to increase oil reserves by five million barrels by drilling new wells. The new wells were estimated to yield about 4,000 barrels of oil per day and may be drilled in the northern portion of the Galoc structure.
Based on the timetable of Otto Energy, a final investment decision is expected to be made by the second half of 2012.
Phase 2 development has already started with the earlier approval by the Galoc joint venture to acquire 184 square kilometers of new 3D seismic data covering the Galoc field and the adjacent Galoc North exploration prospect.
“The resulting inversion and interpretation will be available in the middle of the second quarter of 2012,” Otto Energy earlier said.
The new 3D seismic data acquisition is expected to support the placement of Phase II wells in the reservoir. It will likewise mature the Galoc North exploration prospect, which may be included as part of Phase II or future phases of development at the field.
“The Galoc joint venture has approved the commencement of Front End Engineering and Design (FEED) work to determine the exact locations and number of additional wells to be drilled for Phase II, with drilling likely to take place in 2013,” Otto Energy said.
The scope of FEED work includes subsurface modeling of the reservoir, drilling and completion design, subsea engineering and tie-back design for the new wells, and joint venture financing considerations.
Production at the Galoc oil field, which started producing in 2008, has reached 8.14 million barrels. Production rate stood at 6,472 barrels of oil per day, according to McNab.