Otto Energy Ltd. has executed final binding agreements with BHP Billiton Petroleum (Philippines) Corp. (BHPB) to terminate the farm-out agreement between the two parties over Service Contract 55 (SC55), offshore the Philippines.
Otto has submitted a request to the Philippines Department of Energy (DOE) for reassignment of BHPB’s 60% working interest to Otto, taking Otto’s working interest in SC55 to 93.18%.
Otto plans to submit a Sub-Phase 4 work program and budget with the DOE, to drill the Hawkeye-1 exploration well, which is a turbidite clastic reservoir target in 5,542 feet (1,690 meters) of water, with top reservoir determined to be at 8,963 feet (2,732 meters). Drilling could begin as early as the fourth quarter of 2014.
Otto has also begun a farm-out process to introduce a new partner into the joint venture to participate in the drilling of the Hawkeye-1 exploration well.