Otto Energy reports higher reserves at Galoc
Australia-based Otto Energy reported higher reserves at the Galoc oil field, citing “better than expected reservoir performance to date and an extension of field life due to higher prevailing oil prices.”
The company reported on its website a 19.7-percent increase in the so-called Estimated Ultimate Recovery, or EUR, of proven reserves (1P) and a 3.5-percent increase in the proven and probable reserves (2P).
1P refers to oil reserves with a 90-percent chance of recovery while 2P refers to reserves with 50-percent recoverability.
The report also said the oil field will remain in production until about 2016 to 2018 on the basis of two existing wells alone.
Otto CEO Gregor McNab said in a statement, “Galoc oil field continues to be a key asset for Otto Energy, delivering valuable cash flow to fund future growth opportunities. These upgrades to our 1P and 2P reserves confirm our ability to maintain production for several years to come ahead of the anticipated approval for Galoc Phase II around the middle of this year.”
The Galoc oil field is located in Palawan’s proven oil and gas fairway in a water depth of about 290 meters. Production, which started in October 2008, is ongoing through two production wells.
