Otto Energy has increased the proved (1P) economic ultimate recovery reserves from the Galoc oil field in the Palawan Basin, offshore of the Philippines.
The economic ultimate recovery reserve has been raised by 19.7% on a 1P, Otto Energy said in a statement.
Gregor McNab, Otto chief executive officer, said the Galoc oil field continues to be a key asset for the company, delivering valuable cashflow to fund future growth opportunities.
"These upgrades to our 1P and 2P reserves confirm our ability to maintain production for several years to come and comes ahead of the anticipated approval for Galoc phase II around the middle of this year," said McNab.
Proved and probable reserves were also increased by 3.5%, leaving the field with estimated remaining field life of about five years on a 2P basis from the existing two production wells.
The upgrade in reserves is in line with the company’s plans for a phase II development of the oil field, though the final investment decision is due in mid-2012.
Galoc Production Company as operator, and a 100% subsidiary of Otto Energy, commissions an annual review of remaining oil reserves by independent consulting company Risc. Galoc is expected to remain in production until around 2018 on the basis of the existing two wells alone.
Image: Economic ultimate recovery for the Galoc oil field rose by 19.7% on a proven basis. Photo courtesy of: Ivan Sarenas.