Otto Energy Ltd (ASX: OEL) provide an update on remaining oil reserves balances at the Galoc oil field in the Philippines as at 1 January 2012.
The Operator, Galoc Production Company WLL, a 100 percent subsidiary of Otto Energy Ltd, commissions an annual review of remaining oil reserves by independent consulting firm, RISC.
RISC has reviewed the Galoc oil field reserves in accordance with the SPE,WPC, AAPG and SPEE Petroleum Resource Management System definitions, guidelines and auditing standards.
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 estimates Contingent Resources of 1.49 MMboe (Otto share) at 2C level attributable to the Galoc Phase II development, currently progressing through Front End Engineering and Design, with a target Final Investment Decision around mid-2012.
Otto’s Chief Executive Officer Gregor McNab said “Galoc oil field continues to be a key asset for Otto Energy, delivering valuable cashflow to fund future growth opportunities. These upgrades to our 1P and 2P reserves confirm our ability to maintain production for several years to come and comes ahead of the anticipated approval for Galoc Phase II around the middle of this year.”