PNOC-EC to farm-in into SC55 block; Otto seeks partners for Hawkeye-1
PNOC-EC to farm-in into SC55 block; Otto seeks partners for Hawkeye-1
WEST PERTH, Australia -- Otto Energy has announced that PNOC Exploration Company (PNOC-EC) has expressed an interest in farming into SC55 for a 15% working interest.
Service Contract 55 (SC55) is a deepwater block located in the southwest Palawan basin offshore Philippines and covers an area of 9,880 sq. km.
The commercial terms of the farm-in have been agreed and will be finalised in a farm-in agreement to be entered into by Otto and PNOC-EC. The farm-in is only subject to approval by the Office of the President of the Philippines.
In addition to PNOC-EC, Otto continues to engage with other potential farm-in partners in the lead up to the drilling of the Hawkeye-1 exploration well, which is anticipated to take place during third-quarter of 2015.
Otto has entered into commitments for long lead items required to drill Hawkeye-1, including well heads and casing. The equipment required is currently available in SE Asia and can be sourced prior to the anticipated drilling window.
Otto is also seeking expressions of interest for drilling rigs suitable to drill Hawkeye-1. Final commitment to a drilling rig will be considered subject to suitable commercial terms being negotiated and completion of the farm-out program.
Hawkeye is a high impact opportunity, well defined on modern high quality 3D seismic and demonstrating an amplitude response consistent with a significant oil prospect. Hawkeye has a best estimate oil in place volume of 480 MMbbl and best estimate recoverable volume of 74 MMbbl net to Otto, post farm-down to PNOC-EC. There is further material upside contained in other identified prospects and leads in SC55.
