Posted on 02:03 PM, April 21, 2010Breaking News ( Updated as of...

Posted on 02:03 PM, April 21, 2010
Breaking News ( Updated as of 01:58 PM )


Two more oil wells planned in Galoc
STAKEHOLDERS at the Galoc oil field in northwest Palawan are now evaluating the prospects of drilling two additional wells to tap further reserves.

In a disclosure, Australian firm Otto Energy Ltd. said "Phase 2 evaluation [is] ongoing."

The second stage of the Galoc field development, which involves drilling two additional wells, is expected to tap additional reserves of five million barrels, which will add 4,000 to the field's daily
production.

Otto Energy said an "investment decision [is] expected around mid-year."

"Development planning for potential facilities, upgrade options and Phase 2 drilling [are now] being undertaken by the operator," Otto Energy said.

"Interpretation and mapping of the recently reprocessed seismic data commenced in the [first] quarter. Planning has now commenced for potential Phase 2 drilling," the company added.

Galoc Production Co. is the field's operator with a 59.84% stake in the field. Galoc Production is co-owned by European energy company
Vitol group with 68.6%, and Otto Energy with 31.4%.

The balance is held by Oriental Petroleum & Minerals Corp./Linapacan
Oil Gas & Power Corp. with 7.79%, locally listed The Philodrill Corp.
with 7.21%, and Forum Energy Corp. with 2.28%. -- Jose Bimbo F. Santos