Otto Energy Ltd. says that PNOC Exploration Co. (PNOC-EC) has expressed an interest in farming into SC 55 for a 15% working interest.
The commercial terms of the farm-in are agreed upon and will be finalized in a farm-in agreement to be entered into by Otto and PNOC-EC. The farm-in is subject to approval by the Office of the President of the Philippines.
In addition to PNOC-EC, Otto continues to engage potential farm-in partners in the drilling of the Hawkeye-1 exploration well, anticipated in 3Q 2015.
Otto has committed for long-lead items required to drill Hawkeye-1, including well heads and casing. The company is also seeking expressions of interest for drilling rigs suitable to drill Hawkeye-1. Hawkeye has a best estimate oil in place of 480 MMbbl.
Joint Venture Partners (post farm-down to PNOC-EC) will be Otto Energy Investments Ltd., 33.18%; Otto Energy Philippines Inc., 45%; Palawan 55 Exploration and Production Corp., wholly owned subsidiary of Trans-Asia Petroleum Corp., 6.82%; and PNOC Exploration Corp., 15%.
In other Philippines transactions, Nido Petroleum Ltd. has received approval from the Philippines DOE for the transfer of 10% of PNOC-EC’s participating interest in SC 63 to Nido. The transfer is part of the two-stage farm-in involving the drill the Baragatan-1A exploration well drilled in 2014.
Participating Interests in the Service Contract are as follows: Dragon Oil (Philippine SC 63) Ltd., 40%; PNOC-EC, 20%; and Nido Petroleum Philippines Pty Ltd., 20%.