Australian based oil & gas company Otto Energy releases the following announcement from the Galoc Production Company, operator of the Galoc Field Development offshore Philippines.
Highlights:
• Galoc-3 well has been flow tested at a stabilised rate of approximately 5,200 barrels of oil per day (bopd)
• The well is now ready for connection to the FPSO for first commercial oil production in April 2008
Otto has an indirect 18.28% interest in the Galoc field via a 31.38% shareholding in Galoc Production Company W.L.L. (“GPC”) which holds a 58.29% working interest in the Galoc Oil Field. A subsidiary of the Vitol Group (“Vitol”) owning the remaining stake (68.62 %).
The Galoc-3 well has now been cleaned up at dry oil flow rates of up to 5,397 bopd on a ¾ inch (19mm) choke. This rate was constrained by the facilities on the rig and the expected initial rate from Galoc-3 when the field comes on full production will be higher than this test rate based on analysis of the pressure data during the clean up flow period.
The Galoc-3 well will now be suspended ready for connection to the Rubicon Intrepid FPSO when it arrives in March for first commercial oil production in April. The rig will now be moved over to Galoc-4 to ready it for production, including a similar short clean up flow period to that just conducted on Galoc-3.
Once on production, the gross field production rate is expected to be over 15,000 bopd of which Otto’s beneficial share will be approximately 3,000 bopd. The revenues from Galoc will fund Otto’s extensive exploration program in 2008 and 2009.
CEO of Otto Energy Alex Parks said, “Analysis of the clean up flow from the Galoc-3 well has demonstrated the success of the drilling program thus far. The well cleaned up to virtually 100% dry oil at a rig constrained rate of approximately 5,200bopd which is very much in line with expectations.”
Rick Crabb, Chairman of Otto Energy, said “At a time when oil prices are breaking record prices, we are very excited about achieving Otto’s ‘first oil to surface’ and this is a significant milestone in the company’s history.
"We are looking forward to April, when Otto starts to receive the cash benefits from being an oil producer, and the company can use the funds to progress the next stage in Otto’s growth towards our vision of becoming a significant mid tier Australian oil and gas company.”