Risco Energy to acquire Galoc Field operator GPC for $101.4 million

Risco Energy Investments Pte. Ltd.

Risco Energy Investments Pte. Ltd. has executed a sale and purchase agreement (SPA) to acquire 100% of Galoc Production Co. WLL (GPC) from Otto Energy. GPC has a 33% working interest and is operator of Service Contract 14C, which contains the producing Galoc Field located offshore Palawan, Philippines (Galoc).

Under the SPA, Risco has agreed to pay total consideration of $101.4 million, based on an economic date of July 1. Of this total consideration, a deposit of $10.14 million has already been paid. Transaction completion is conditional upon Otto Energy’s shareholder approval at a general meeting, which is expected to occur no later than December. Otto’s board of directors is unanimously recommending the deal to its shareholders.

In consideration of the purchase price and to secure the deal, Risco has procured a break fee and certain rights customary with a transaction of this nature.

Risco is a Singapore-incorporated company focused on upstream oil and gas in the Association of Southeast Asian Nations (ASEAN). The company has invested in both conventional oil and gas production, as well as unconventional production in coalbed methane and shale/tight sands.

Risco has appointed Macquarie Capital (Australia) Ltd. as its advisor in relation to this transaction.

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