Otto Energy Limited (ASX:OEL) Announces Galoc Oil Field Update Upon Re-commencing Production On 25 Feb 2009
Perth, Mar 2, 2009 (ABN Newswire) - Otto Energy Limited (ASX:OEL)(PINK:OTTEF) is pleased to advise that since re-commencing oil production at the Galoc Oil Field on 25 February 2009 production rates have averaged in excess of 16,000 barrels per day. This flush production is anticipated to continue over the next several days whereupon the field production is likely to return to its pre-shutin (December 2008) rates of around 13,000 to 14,000 barrels of oil per day.
Otto holds a 31.38% shareholding in Galoc Production Company (GPC) which has a 58.29% working interest in the Galoc licence. Otto's share of the outstanding GPC debt over the Galoc Field is currently US$8.8 million (non-recourse and net of cash collateral. The cash collateral will fully over Otto share of the recourse portion of the GPC debt).
Following the recommencement of production, GPC has agreed with its banks a revised loan repayment schedule for the non-recourse portion of the debt over the Galoc Field. Under the revised repayment schedule GPC will make two cash instalments with the balance of the outstanding debt intended to be fully repaid by 30 June 2009 through the cash sweep mechanism (from the GPC equity account). The first cash instalment was paid by GPC on 27 February 2009 (Otto share US$1.6 million) and a second instalment will be paid no later that 27 March 2009 (Otto share US$1.6 million).
About Otto Energy:
Based in West Perth, Otto Energy Limited (ASX: OEL) is an international exploration and production company that has assembled a balanced portfolio of oil and gas assets in the Philippines, Turkey, Italy and Argentina.
As of mid 2008, Otto expects to receive revenue from production at the Galoc Oil Field in the Philippines which will be used to fund further development and exploration across all of the Company’s highly prospective assets. Otto is opportunity rich with an exploration portfolio that includes additional discoveries that are under development, approximately 20 drillable prospects covered by new 3D seismic and well over 60 exploration leads which are being matured as follow-up potential. Consequently, Otto has an active exploration and appraisal drilling program in 2008/2009.
Source: http://www.ecplaza.net/news/
Otto holds a 31.38% shareholding in Galoc Production Company (GPC) which has a 58.29% working interest in the Galoc licence. Otto's share of the outstanding GPC debt over the Galoc Field is currently US$8.8 million (non-recourse and net of cash collateral. The cash collateral will fully over Otto share of the recourse portion of the GPC debt).
Following the recommencement of production, GPC has agreed with its banks a revised loan repayment schedule for the non-recourse portion of the debt over the Galoc Field. Under the revised repayment schedule GPC will make two cash instalments with the balance of the outstanding debt intended to be fully repaid by 30 June 2009 through the cash sweep mechanism (from the GPC equity account). The first cash instalment was paid by GPC on 27 February 2009 (Otto share US$1.6 million) and a second instalment will be paid no later that 27 March 2009 (Otto share US$1.6 million).
About Otto Energy:
Based in West Perth, Otto Energy Limited (ASX: OEL) is an international exploration and production company that has assembled a balanced portfolio of oil and gas assets in the Philippines, Turkey, Italy and Argentina.
As of mid 2008, Otto expects to receive revenue from production at the Galoc Oil Field in the Philippines which will be used to fund further development and exploration across all of the Company’s highly prospective assets. Otto is opportunity rich with an exploration portfolio that includes additional discoveries that are under development, approximately 20 drillable prospects covered by new 3D seismic and well over 60 exploration leads which are being matured as follow-up potential. Consequently, Otto has an active exploration and appraisal drilling program in 2008/2009.
Source: http://www.ecplaza.net/news/
posted by B2B India @ 11:07 PM
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