Ann: Galoc Reserves Update , page-2

GALOC
OIL FIELD
RESERVES UPDATE
Highlights:?Updated Galoc oil field
reserves (net to Otto):
1P Reserves of 2.75
MMstb and 2P Reserves of 3.77 MMstb
?Production since Phase II start-up within the range of pre
-drill expectations
?Galoc oil field expected to produce beyond 2020.
Otto Energy Ltd (“Otto”)(
ASX: OEL) provides an update on the Galoc oil field reserves
in the Philippines as at 1 January 2014 .
The operator of the Galoc oil field
, Galoc Production Company WLL, a wholly owned subsidiary of Otto , has commissioned an annual review of remaining oil reserves from RISC , an independent consulting firm.
The annual review has resulted in an adjustment of 2P Reserves of less than 1% caused by a mixture of technical and economic factors (including oil prices). A detailed breakdown of Reserves is shown in Appendix A.Since the
completion of the Phase II development in December 2013,
production has performed in line with expectations this performance is expected to continue. Three cargoes have been lifted from the field since December 2013
with a further lifting scheduled around the end of the
March 2014 quarter .
The Galoc oil field is expected to remain in production beyond 2020 based on the Galoc
Phase I and
Phase
II well configuration.
Otto's Chief Executive Officer Mr
Matthew Allen
said "
Galoc is a key asset for Otto, delivering valuable
cashflow to fund future growth opportunities.
Otto's investment in Galoc Phase II in 2013 has delivered a
substantial increase in production, with current production rates around 9700 bopd (3,200 bopd net to Otto) , and Otto's operator-ship of this successful development demonstrated the organizations strong project execution capabilities
. We continue to seek additional opportunities to expand the Galoc oil field with
further infill drilling
.