Needle: Otto own nor asian and will use galoc profits to fund....

Needle: Otto own nor asian and will use galoc profits to fund.
Regional Energy Director Antonio Labios said Japan Petroleum Exploration Company (JAPEX) will submit its report by July this year. GGX permits squeezed between these two massive implications for GGX permit if oil confirmed.


Oil drilling at Bohol-Cebu strait to commence soon
By KIT BAGAIPO
In the next three months, Australian oil and gas exploration firm Otto Energy Ltd. will be announcing its schedule for the drilling of oil wells in the country, including the Cabilao, Loon and Argao, Cebu prospects.

The Australian oil exploration company owns NorAsian Energy Ltd. which conducted the controversial 2D and 3D seismic surveys off Bohol sea.

Otto Energy is set to drill three wells in three service contracts awarded by the government which will be funded partly by the company's $100-million proceeds from another oil field.

Alex Parks, chief executive officer of Otto Energy, said in an email, that the company would drill one well at the Bohol-Cebu Strait off Cabilao Island in the first half of 2009.

Two other exploration wells will be drilled at Service Contract (SC) 50 covering the Calauit oil field and SC 55 which covers the Marantao prospect in western Palawan.

"We plan to drill one well in each of SC 50, 51 (Bohol-Cebu) and 55 before the middle of 2009. We are actively talking to rig companies and hope to announce drilling dates by July this year," Parks said.

He said Otto Energy would fund its planned exploration wells through a combination of its share of profits from the Galoc oil field project, or approximately $50 million each in 2008 and 2009, and equity from farm-in partners.

Otto Energy holds 31.38 percent in Galoc Production Co., lead operator of the Galoc oil field (under SC 14), which is expected to release the first oil production by next month.

Otto Energy, through its subsidiary NorAsian Energy, said the Cabilao-Argao prospect or SC 51 could is confirmed to contain of up to 270 million barrels (MMbbls) of recoverable oil in conventional sandstone reservoirs.