Otto Energy’s stake in Galoc field to be voted 2nd week of December

MANILA, Oct. 28 (PNA) — Otto Energy’s 33 percent stake in the Galoc oil field will be decided by stakeholders on the second week of December 2014.

“The Shareholder Extraordinary Meeting is scheduled to be held in the second week of December 2014 to seek shareholder approval for the completion of the divestment of the Galoc Production Company WLL (GPC),” the company said in a disclosure on the Australian Bourse Tuesday.

Otto Energy has already executed a sale and purchase agreement to Risco Energy Investment Pte Ltd, a Singapore listed company engaged in energy investments.

Risco Energy is expected to pay US$ 101.4 million for the entire stake of Otto Energy at the Galoc Oil Field or Service Contract 14C at 33 percent.

For the 3rd Quarter of 2014, Galoc’s production reached 715,783 oil barrels (bbl), while its net produced 236,208 barrels, based on its production and financial summary.

SC 14C has an average produce of 7,780 barrels per day.

Otto Energy, however, cited a lower production net of -6.21 percent at 236,208 bbl from March 2014’s 251,864 bbls.

But revenues on Service Contract 14-C has increased by 2.57 percent from March 2014’s US$ 21.676 million to US$ 22.232 million in September.

Among its target for the next six months is to find a new venture partner for Service Contract 55 or Hawkeye 1, which is owned by Otto Energy at 93.18 percent. It has already started drilling planning preparations in the area.

Otto Energy wants a company partner with deep experience to join in the exploration program, along with two companies with South East Asia operations which will undertake technical reviews of the data.

Otto Energy is an oil and gas company listed in the Australian Stock Exchange, engaged in exploration, development and production. It has projects in the Philippines and Tanzania. (PNA)