Australian firm Otto Energy Ltd. is set to start the drilling in two new wells in the Galoc oil field in Northwest Palawan to bolster its bid to increase oil production at the field to more than 12,000 barrels of oil a day.
In its filing with the Australian Securities Exchange, Otto Energy disclosed that it has started drilling Galoc-5H and Galoc-6H on Tuesday.
The drilling forms part of the Galoc Phase II development approved in 2012.
“Otto is pleased to advise that at 1300 hours on 4 June 2013, the Ocean Patriot semi-submersible drilling rig commenced drilling the Galoc-5H and 6H development wells,” the disclosure said.
Otto Energy further said that the drilling is expected to take approximately 115 days, including the flowing of the wells for clean-up.
“Otto will provide weekly updates on drilling progress commencing on Wednesday 12 June 2013,” the corporate filing added.
The Galoc field is located in Service Contract SC14C (Galoc Sub Block) approximately 65 kilometers North West of Palawan Island and 350 kilometers south of Manila.
The Galoc-5H Galoc-6H development wells are being drilled within the existing producing field that has delivered over 10 million barrels of production since the field was commissioned in 2008.
Otto Energy cited that the wells are being batch drilled in 311 meters of water.
“It is planned that the Galoc-5H and Galoc-6H development wells will be drilled to a total vertical depth of 2,190 [meters]with approximately 2,000 [meters]of horizontal completion,” the firm added.
First oil from the Phase II wells is expected during the fourth quarter of this year.
In the prior year, the Galoc Phase II development was planned out to increase oil production at the field to more than 12,000 barrels of oil a day from the current average of 4,750 barrels a day.