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Risco Energy secures Galoc Field offshore Philippines with Otto deal

22nd September 2014

Risco Energy has signed a deal to acquire 100 per cent of Galoc Production Company (GPC) from Otto Energy, which in turn owns a 33 per cent working interest in and is operator of the SC14c Service Contract containing the producing Galoc Oilfield offshore Palawan and an operating team

Risco Energy secures Galoc Field offshore Philippines with Otto deal
The Galoc oil field is located in Palawan's proven oil and gas fairway in a water depth of approximately 290 metres and commenced production in October 2008

GPC will be an important new core asset for Risco and a critical component to grow a Philippines business.

Risco sees considerable further value generation potential in SC14c.

Under the sales purchase agreement, Risco has agreed to pay total consideration of USD 101.4m, based on an economic date of 1 July 2014.

Of this total consideration, a deposit of USD 10.14m has already been paid. Transaction completion is conditional upon Otto Energy’s shareholder approval at a general meeting, which is expected to occur no later than December 2014.

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