Australian firm Otto Energy Ltd. is planning to drill five wells by end-2013, as it targets to tap the prospective oil and gas structures in Palawan and the Visayas.
Otto Energy chief executive officer Gregor McNab said in a regulatory filing that two wells would be development wells that would be drilled under Phase II of the Galoc oil field development, covered by Service Contract 14C. The remaining three will be exploration wells within Galoc North (SC 14C), Cinco prospect (SC 55) and Duhat prospect (SC 51).
Energy Undersecretary Jose M. Layug Jr. commended the efforts of Otto Energy, noting that the company was among the most serious proponents in the Philippine upstream oil and gas exploration sector.
According to Otto Energy, the $118-million Phase II development for Galoc is expected to increase field production to more than 12,000 barrels of oil per day (BOPD) from the current 5,600 BOPD, or deliver 8 million barrels of additional reserves.
As of end-June this year, production at the Galoc oil field had breached the 9-million-barrel mark, accounting for 62 percent of the 14.44 million barrels in projected reserves.
Under service contract 14C, an exploration well is also expected to be drilled in the adjacent Galoc North exploration prospect.