recent article - cautious tone

Taken from a Reuters Interview:
http://uk.reuters.com/article/oilRpt/idUKSP4974120090130?pageNumber=2&virtualBrandChannel=0&sp=true


A modest recovery in prices to around $60 a barrel would be enough to guarantee the company's future, Parks said.

"If prices can average $60ish, we can fund and develop our programme. Costs are down but they cannot go back to where they were when oil was at $20. $60 is the new $30," Parks said.

Global miner and exploration firm BHP Billiton (BHP.AX) (BLT.L) has farmed in Otto's service contract 55 in the Philippines, and will shoulder 3D seismic, drilling and back costs for the offshore, deepwater, block.

But Otto has to find a partner before it can develop the promising Caluit field, also offshore Philippines.

There may be opportunities to buy new assets too, but it is still early, Parks said.

"For the people in the right position, there are opportunities. For the moment, we have to be careful with our commitments. If the banks squeeze harder, some companies may have to sell assets,"Parks said.

"We have to slow down our spending. And we may be looking for financing later in the year, and may trim our programme further. But we are not for sale," Parks said. (Editing by Ramthan Hussain)