- Category: Economy
01 Jul 2013
- Written by Paul Anthony A. Isla
Australia-based Otto Energy Ltd. said on Monday that the Duhat-2 prospect on the San Isidro anticline in Leyte province has been found to contain a mean prospective resource of 34 million barrels of oil.
In a disclosure to the Australian Stock Exchange, Otto said the Duhat-2 prospect has a range of one to 88 million barrels of oil.
Otto added that nearby oil seeps indicate clear evidence of a working petroleum system in the area and drilling is supported by quality 2D seismic data, which has substantially de-risked the structure. Given the onshore location of Duhat-2, Otto said that a discovery as small as 1 million barrels could be economic.
In the case of exploration success at Duhat-2, Otto added that field development and production could occur as early as 2014 as part of an extended production, and full field development would then follow.
Gregor McNab, Otto chief executive, said drilling of the Duhat-2 demonstrates their commitment to deliver value from their exploration portfolio that is focused on East Africa and the Philippines.
He added that the commencement of rig mobilization for this well marks the start of the third operated well in 2013, alongside the two development wells being drilled for Galoc Phase II.
McNab said “prudent financial management” has allowed them to fully fund these activities without dilution of shareholders’ interests despite difficult market conditions.
“Duhat-2 is targeting an exciting large oil prospect with significant upside and the potential to deliver a second production asset for Otto in the near term. Given the low onshore drilling costs for Duhat-2, we have retained a significant 80-percent working interest without over exposing our balance sheet to a single opportunity,” he said.
Earlier, Otto said site preparation for the drilling of an exploration well in the Duhat-2 oil field under Service Contract 51 in San Isidro, Leyte, is ongoing.
Otto said the contracted rig, Desco Rig 30, has started mobilization from the Batangas port and is expected to arrive at the San Isidro Port by the first week of July. All other required equipment are expected to be onsite by the second week of July and ready to drill Duhat-2 by mid-July 2013.
The company said the well is programmed to reach approximately 1,000 meters within a period of 31 days.