Otto Completes Galoc Oil Field Transaction

abarrelfullabarrelfull wrote on 14 Aug 2013 08:38

17 December 2007

Australian based oil & gas company Otto Energy (ASX: OEL) is pleased to announce the completion of the acquisition of a 31.38% shareholding in Galoc Production Company W.L.L. (“GPC”) which holds a 58.29% working interest in the Galoc Oil Field.

Otto has acquired two single asset companies; Team Oil Limited (“Team”) and Cape Energy Philippines SA (“Cape”), who each owned a 15.69% interest in GPC.

Otto has thereby acquired an 18.28% indirect interest in the Galoc Oil Field development project in the Philippines. GPC is the operator of the Galoc Oil Field development project in SC14c, offshore Philippines. There are now two shareholders in GPC, Otto and a subsidiary of the Vitol Group (“Vitol”) owning the remaining stake (68.62 %).

Commenting on the transaction Alex Parks CEO of Otto Energy said “Otto is very pleased with the transaction. The revenues from Galoc’s oil production will fund Otto’s exciting exploration programs, which could deliver significant oil and gas discoveries in Otto’s worldwide acreage in the second half of 2008 and 2009”

Progress Reporting.

The second Galoc horizontal development well is currently being drilled and the FPSO is due to arrive onsite in February for commissioning in March. Full rate production is scheduled to commence during April 2008 at an estimated 15-18,000bopd.

Otto now owns an indirect interest in the Galoc Field through the shareholding in GPC, however, Otto is not a direct participant in the project and consequently will limit ASX releases to reporting on significant milestones or events, rather than general progress reports.

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