Page 42 - Oil&Gas-AustralAsia-2015-Issue-3
P. 42
P HILIPPINES
Otto mobilises rig to spud Hawkeye-1
By Marie RYAN
Otto Energy (OEL) has announced a RMP, Otto holds a 63.18 per cent work- Red Emperor’s Managing Director Greg
farm-out deal with independent E&P ing interest in block SC55, located in Bandy said the news that the formal
Red Emperor Resources (RMP) for a 15 the south-west Palawan basin covering notice for the mobilisation of the drill
per cent working interest in the offshore an area of 9,880 square kilometres. ship has now been issued by OEL is
Philippine block SC55, the company The Service Contract 55 requires the extremely positive.
said it was now fully funded to drill the drilling of a deepwater well by 23 “The Hawkeye-1 well should now spud
Hawkeye-1 exploration well and will December 2015, mobilisation of the in early August, making the next few
remain the operator on the project. Maersk Venturer to the drilling location months very exciting for Red Emperor
The Hawkeye discovery is reported will commence at the end of July and and its shareholders. We look forward
by Otto as a turbidite clastic oil pros- is expected to take around 1 to 2 days to updating the market in due course
pect with best estimate gross unrisked with drilling operations to commence on progress,” Mr Bandy said. §
prospective resources of 95mmbbl. The upon arrival of the rig on location.
prospect lies at a water depth of 1,700m
in a proven oil and gas province in the
Palawan basin with Otto Energy’s 3D
seismic data showing multiple flat spots.
“There is significant prospectivity in the
SC55 block after Hawkeye, notably the
1.6tcf equivalent Cinco gas/condensate
prospect plus gassy targets totalling
8-9tcf in follow-on prospects. Otto is
in the enviable and unusual position of
being fully funded for three near-term
exploration wells, targeting 161mmboe
of net unrisked resource,” the company
said in a statement.
OEL said it had contracted the high-
spec deepwater Maersk Venturer rig at
attractive day rates and is on track to
spud Hawkeye-1 in the third quarter of
this year.
“Given the drop in rig rates, we assume
US$35m of well costs vs US$48m
previously. While the deal with RMP
does not include a cost carry, it still
reduces Otto’s financial exposure to the
Hawkeye-1 well. The well is now fully
funded, as BHP Billiton’s US$24.5m
contribution and funding from its two
JV partners entirely cover Otto’s net
63.18% share of well costs,” OEL said.
After the divestment of its Galoc field at The Hawkeye prospect. Image courtesy of Otto Energy
the beginning of the year, Otto Ener-
gy retains interests in two operated
offshore licences in the Philippines;
Service Contract (SC) 55 and Service
Contract 73. Following its two 15 per
cent farm-out deals with PNOC and
A A40 OIL & GAS ustral SIA JULY/AUGUST 2015 www.oilandgasaustralasia.com
Otto mobilises rig to spud Hawkeye-1
By Marie RYAN
Otto Energy (OEL) has announced a RMP, Otto holds a 63.18 per cent work- Red Emperor’s Managing Director Greg
farm-out deal with independent E&P ing interest in block SC55, located in Bandy said the news that the formal
Red Emperor Resources (RMP) for a 15 the south-west Palawan basin covering notice for the mobilisation of the drill
per cent working interest in the offshore an area of 9,880 square kilometres. ship has now been issued by OEL is
Philippine block SC55, the company The Service Contract 55 requires the extremely positive.
said it was now fully funded to drill the drilling of a deepwater well by 23 “The Hawkeye-1 well should now spud
Hawkeye-1 exploration well and will December 2015, mobilisation of the in early August, making the next few
remain the operator on the project. Maersk Venturer to the drilling location months very exciting for Red Emperor
The Hawkeye discovery is reported will commence at the end of July and and its shareholders. We look forward
by Otto as a turbidite clastic oil pros- is expected to take around 1 to 2 days to updating the market in due course
pect with best estimate gross unrisked with drilling operations to commence on progress,” Mr Bandy said. §
prospective resources of 95mmbbl. The upon arrival of the rig on location.
prospect lies at a water depth of 1,700m
in a proven oil and gas province in the
Palawan basin with Otto Energy’s 3D
seismic data showing multiple flat spots.
“There is significant prospectivity in the
SC55 block after Hawkeye, notably the
1.6tcf equivalent Cinco gas/condensate
prospect plus gassy targets totalling
8-9tcf in follow-on prospects. Otto is
in the enviable and unusual position of
being fully funded for three near-term
exploration wells, targeting 161mmboe
of net unrisked resource,” the company
said in a statement.
OEL said it had contracted the high-
spec deepwater Maersk Venturer rig at
attractive day rates and is on track to
spud Hawkeye-1 in the third quarter of
this year.
“Given the drop in rig rates, we assume
US$35m of well costs vs US$48m
previously. While the deal with RMP
does not include a cost carry, it still
reduces Otto’s financial exposure to the
Hawkeye-1 well. The well is now fully
funded, as BHP Billiton’s US$24.5m
contribution and funding from its two
JV partners entirely cover Otto’s net
63.18% share of well costs,” OEL said.
After the divestment of its Galoc field at The Hawkeye prospect. Image courtesy of Otto Energy
the beginning of the year, Otto Ener-
gy retains interests in two operated
offshore licences in the Philippines;
Service Contract (SC) 55 and Service
Contract 73. Following its two 15 per
cent farm-out deals with PNOC and
A A40 OIL & GAS ustral SIA JULY/AUGUST 2015 www.oilandgasaustralasia.com
