Otto Energy in talks for Leyte oil drilling

MANILA, Philippines - Otto Energy Ltd., an Australian oil exploration firm, is talking with a prospective partner for the planned oil drilling in Leyte in the first quarter of 2011.

In a report, Otto Energy said the drilling at Service Contract 51 will be undertaken by its wholly-owned subsidiary NorAsian Energy Ltd. NorAsian owns 80 percent of SC 51.

“Commitment was made to drill the onshore Duhat-1 exploration well on the island of Leyte. This is a commitment well planned to be drilled to a depth of 1000 metres,” Otto Energy said.

Otto Energy said they are awaiting go signal from the Department of Energy (DOE) to be able to start the drilling process.

The drilling of exploratory well called Duhat-1 is consistent with the company’s service contract timing commitment.

SC 51 comprises of two areas, onshore Northwest Leyte in the north and the islands of Cebu and Bohol in the south.

The prospect is estimated to contain potential prospective resource of 93 million barrels of oil. It is also within the Bahay prospect, located along the structural trend, which could be drilled if Argao prospect is successful.

“Eleven prospects and leads have been mapped in the southern portion of the block based on 2D and 3D seismic data A potential prospective resource totaling 500 million barrels of oil (best estimate) is presently identified in southern SC51,” Otto Energy said.

The company said the offshore part of the East Visayan Basin is relatively unexplored with only 10 wells drilled in the region.

NorAsian’s partners in the contract area are Trans-Asia Oil and Energy Development Corp., Alcorn Gold Resources Corp. and Petro-energy Resources Corp.