Otto Energy Ltd of Australia said Monday it expects the Galoc oil field in northwest Palawan to continue delivering oil until 2018 due to higher reserves.
Otto Energy told the Australian Stock Exchange that recoverable oil reserves in Galoc had risen nearly 20 percent and the field’s lifespan from the existing two production wells had increased by five years.
Otto Energy owns Galoc Production Co., operator of the Galoc oil field, which is covered by service contract 14 C.
Galoc Production owns 59.8 percent of SC 14-C while Nido Production Ltd holds 22.88 percent. Oriental Petroleum & Minerals Corp. and Linapacan Oil Gas & Power Corp. own 7.785 percent; The Philodrill Corp., 7.214 percent; and Forum Energy Philippines, 2.275 percent.
Galoc Production earlier commissioned Resource Investment Strategy Consultants for an annual review of the field’s oil reserves.
The report indicated that proven reserves as of January 1, 2012 reached 12.58 million barrels, up 19.7 percent from 10.51 million barrels in January 1, 2011. The report indicated that proven and probable reserves also rose up to 19.75 million barrels, up 2.7 percent, from 19.23 million barrels.
“Reported increases in reserves are attributable to better-than-expected reservoir performance to date and an extension of field life due to higher prevailing oil prices. The Galoc oil field is expected to remain in production until approximately 2016 to 2018 on the basis of the existing two wells alone,” Otto Energy said.
The Galoc field has already produced over 8.46 million barrels to date. The government’s share from the Galoc royalties amounted to P1.547 billion in 2011. The Galoc field started production in October 2008.