AUSTRALIA-BASED Otto Energy Ltd. said on Wednesday that it has started a three-dimensional (3D) seismic data acquisition program in Service Contract (SC) 69 in the Visayan Basin.
In a statement, Otto said seismic vessel BGP Explorer has been contracted to record the data. The company plans to acquire approximately 210 square kilometers of 3D seismic data in the area.
Otto added that SC 69 covers an area of 5,280 square kilometers in the central Visayan Basin where the data acquired from the successful 2D seismic campaign last year confirmed the presence of two sizeable reef structures—Lampos and Lampos South—that sit immediately adjacent to the Calamangan Trough which is modeled to generate both oil and gas.
Otto said current “success case” estimates of oil initially in place in the combined structures range between 22 million barrels and 713 million barrels with a mean in-place volume of 290 million barrels.
Paul Moore, Otto managing director, said the ongoing exploration program in the Visayan region is a core part of Otto’s exploration program with the 3D seismic data currently being acquired ahead of the drilling obligation, in the next subphase.
Otto earlier said it will increase its equity in SC 69 to 79 percent for conditions that include the payment to Trans-Asia Oil and Energy Development Corp. for expenditures in subphases 1 and 2 [estimated at around $308,000].
The other conditions also take into consideration the payment of 50 percent of Trans-Asia’s remaining equity share of 6 percent of expenditure in subphase 3 comprising the 3D seismic survey expected to be conducted in the second quarter of the year and the carry of Trans-Asia’s remaining 6-percent equity share of a well that is to be drilled in either subphase 4 or 5. Otto added that it does not elect to drill the required well, the assigned equity will be reassigned to Trans-Asia.
“The increase in equity in these core exploration permits is part of the continued strategy of focusing on these high potential permits. We are proud to be working with our joint venture partner Trans-Asia in these permits and maturing the exploration towards drilling activities in both permits,” Moore said.
