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PNOC eyes Hawkeye potential with SC55 farm-in offshore Philippines

09th January 2015

PNOC Exploration Company (PNOC-EC), the upstream subsidiary of state owned Philippine National Oil Company, has expressed an interest in farming into Service Contract 55 (SC55) offshore Palawan for a 15 per cent working interest, according to majority owner and operator Otto Energy

PNOC eyes Hawkeye potential with SC55 farm-in offshore Philippines
The equipment required is currently available in Southeast Asia and can be sourced prior to the anticipated drilling window

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.

“Otto Energy is very pleased to welcome a partner of the quality of PNOC Exploration Company into SC55,” said Matthew Allen, Otto’s CEO.

“PNOC-EC bring substantial experience in the Philippines oil and gas industry to the SC55 joint venture. We look forward to progressing the high impact exploration programme with the Hawkeye-1 well in SC55 with PNOC-EC and our joint venture partners. Otto notes that the cost of this upcoming exploration programme is likely to be considerably reduced as weaker oil prices impact on rig and contractor rates”

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 the 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 Southeast 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. It 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.

 

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