THE drilling operation in San Isidro, town can yield from two million to 18 million barrels of oil, Otto Energy Ltd. announced. It also bared that the Duhat-1 has commenced drilling with the official spud of the well this month. The Desco Rig-1 drilling unit is being used for the well which is expected to take 27 days to reach the depth, a company statement said.
Otto Energy Ltd., which is in charge of the Duhat-1 exploration well in Service Contract (SC) 51 in Leyte, will sink in $2.5-$3 million for the drilling operations. The service contract covers 332,000 hectares. The drilling of the Duhat-1 exploratory well is part of the current sub-phase of the contract.
Early this year, Otto Energy signed a “farm-out” agreement with Swan Oil and Gas Ltd. for Service Contract 51 in the Visayas. A “farm-out” agreement allows a company to offer part of its participating shares in a service contract to another company to help fund projects in the area.
Early this year, Otto Energy signed a “farm-out” agreement with Swan Oil and Gas Ltd. for Service Contract 51 in the Visayas. A “farm-out” agreement allows a company to offer part of its participating shares in a service contract to another company to help fund projects in the area.
Otto Energy is supposed to transfer 40% equity in SC 51 to Swan but will remain as the operator. The agreement has been approved by the SC 51 joint venture partners and is awaiting approval of the Energy Department.
Parters in the consortium are Trans-Asia, Alcorn Gold Resources Corp., PetroEnergy Resources Corp. and NorAsian Energy Ltd., a unit of Otto Energy. Based on initial studies, the area has enough deposits of oil which we could get as two million to 18 million barrels.
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