New drilling starts August: Shows strategic economic value of West PHL Sea

Otto Energy Investments Ltd. (OEIL) – operator of Service Contract (SC) 55, Offshore Palawan – is set to start exploratory drilling in Hawkeye – 1 exploratory well. Drilling will start immediately after drill ship Maersk Venturer arrived in location July 31. Otto Energy holds 78.18% stake in SC55, Red Emperor and Palawan55 have 15% and 6.82%, respectively.

“Success at Hawkeye will unlock a significant new hydrocarbon play in the deep water Southern Palawan region,” Otto Energy said. SC55 is not located in disputed territory.

Otto Energy has secured the Maersk Venturer ultra deep-water drill ship to drill the Hawkeye well.

“The drill ship Maersk Venturer which is currently in Labuan, Malaysia, is expected to arrive at the well location by 31 July 2015, with actual drilling to commence 1 to 2 days thereafter,” Trans-Asia Petroleum Corporation (TAPET) said in a disclosure to Securities and Exchange Commission early this month. Palawan55 Exploration & Production Corporation (“Palawan55”) a subsidiary of TAPET.

Liquefied Petroleum Gas Marketers’ Association (LPG-MA) Representative Arnel Ty said “we applaud the consortium’s resolve to push through with the drilling of the well, at a time when many oil and gas explorers around the world have abandoned their search for new hydrocarbon deposits amid the 50-percent plunge in oil prices.”

“This new drilling underscores the strategic economic value of the West Philippine Sea, which is the source of most of the country’s productive offshore oil and gas fields, and is believed to hoard stacks of hydrocarbon that, once harnessed, could enable the Philippines to become self-sufficient in its future energy needs,” the LPG-MA lawmaker said.