Australian firm Otto Energy Ltd. is set to start exploring oil and natural gas in an area off the Mindoro basin.
In a filing with the Australian Securities Exchange, Otto Energy disclosed that it has been formally awarded with Service Contract 73, formerly Area 7, under the Fourth Philippine Energy Contracting Round (PECR).
Otto will now commence a program involving the reprocessing of existing seismic data off the coast of Mindoro, with a minimum financial commitment of $500,000 within an initial period of 18 months.
Service Contract 73 is an offshore block located in the southern part of the Mindoro Basin—Cuyo Platform, a continental rift basin offshore the Philippines. It covers about 8,440 km2 with water depths ranging from 100 meters to 1,300 meters. There is an existing 2D seismic data set of over 3,000 kilometers covering the block.
The petroleum play types identified in Service Contract 73 are reef build-ups, fault blocks and anticlines.
Otto Energy cited that oil has been discovered with an extended production test conducted in 1994 at the Maniguin wells near the block. The occurrence of oil seepages in the Mindoro Island region also confirms the presence of an active petroleum system in the area.
“The addition of this new exploration acreage is consistent with our strategy to build an integrated exploration, development and production company focused on South East Asia and East Africa. Service Contract 73 has the potential to restock our existing, high impact, exploration prospect inventory,” said Gregor McNab, Otto chief executive officer. Madelaine B. Miraflor