Otto Energy seeks DOE OK for further studies

MANILA, Philippines – The consortium operating service contract (SC) 55 in offshore Northern Palawan expects the government’s go-signal to undertake further studies in the oil and gas prospect in early 2016.

In a statement posted on its website yesterday, Otto Energy Investments Ltd. said the group expects a response from the Department of Energy (DOE) with respect to its moratorium request early in the new year.

“The consortium intends to undertake further technical studies during the moratorium period, including a quantitative interpretation (QI) study,” it said.

QI is a relatively recent geophysical technique designed to gain a better understanding of existing and potential petroleum reservoirs.

The consortium, through Otto Energy, earlier asked the DOE for a two-year moratorium for SC 55 after it completed a drilling activities in the Hawkeye Well last August, consortium member Trans-Asia Petroleum Corp. disclosed on Tuesday.

The drilling showed there was an active petroleum system in the area but gas in the project was not in commercial quantities.

SC 55, located near the Malampaya gas field in offshore Palawan, is estimated to have some 2.2 trillion cubic feet of gas, according to DOE.

In particular, the Hawkeye well was believed to have an estimated 480 million barrels of oil identified on 2D seismic originally acquired by Otto in 2007 and further defined with the 600-km 3D seismic acquisition in late 2009.

Otto Philippines, a subsidiary of Otto Energy, has a 68.18 percent participating interest in SC 55.

Trans-Asia Petroleum’s subsidiary Palawan55 Exploration and Production Corp. holds a 6.82 percent participating interest in the SC.

Pryce Gases Inc., which bought into the project last August, owns a 10 percent stake in the project while Century Red Pte. Ltd., a unit of Red Emperor Resources NL, has 15 percent.