Otto Energy relinquishes SC69 stake in Philippines

Otto Energy Ltd. is relinquishing its 79% stake in Service Contract 69 offshore the Philippines’ Visayan Islands, following 2D and 3D seismic evaluation work carried out over the block.

Offshore staff
THE VISAYAS, PHILIPPINES –Otto Energy Ltd. is relinquishing its 79% stake in Service Contract 69 offshore the Philippines’ Visayan Islands, following 2D and 3D seismic evaluation work carried out over the block.

Despite the presence of three prospects (Lampos, Lampos South, and Managau East), company management determined that the prospectivity risk associated with this acreage was insufficient to warrant the costs of drilling in 700-m (2,297-ft) water depths.

Otto reports that it will continue to invest in its other assets in the Philippines and East Africa. These include the Phase II development of the producing Galoc field, which is nearing completion; exploration drilling in SC55; and seismic acquisition in the Kilosa-Kilombero and Pangani production sharing agreements in Tanzania.

10/08/2013

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