Amid a declining oil market, Australian-based Otto Energy Ltd (Otto), which owns Otto Philippines, has reported a profit in the first half of 2014.
Otto’s Chief Executive Officer Matthew Allen said the net profit after tax reached US$16.888 million in the first six months of 2014.
He said the company posted a closing cash position of $31.299 million as of December 31, 2014, which included $10.823 million held by Galoc Production Company W.L.L that was held for sale at the end of the period.
Allen said the significant cash flow generated by the divestment of the Galoc oil field will allow Otto to pay the proposed A$0.064 per share capital return to shareholders.
“It will provide sufficient funding for the forward exploration programs at SC55 in the Philippines, and the two licenses onshore Tanzania,” said Allen.
During the half-year, Otto continued to have strong production from the existing wells Galoc 3H, 4H, 5H and 6H, which contributed to the strong sale revenues.