Offshore staff

SYDNEY, Australia – The Galoc Production Co. reports that the joint venture has approved going ahead with the front-end engineering and design (FEED) for Phase II and also the acquisition of new 3D seismic data.

The purpose of the FEED is to determine the number of added wells to be drilled and where they will be drilled. Drilling is expected to be in 2013. The FFED also will include modeling of the reservoir, subsea engineering, and a tieback design for the new wells.

The final project approval, Final Investment Decision ("FID"), for the Galoc Phase II development is targeted for mid-2012. The Galoc Joint Venture says it will consider pre-investment in required infrastructure, including wellheads, flowlines, and umbilical lines during the FEED stage.

The survey approval is for 184 sq km (71 sq mi) of new 3D seismic data over Galoc field and the adjacent Galoc North prospect. The survey is set for October with the inversion and interpretation done by the middle of 2Q 2012.

09/13/2011