Australian firm releases result of exploration off Palawan

Otto Energy has released the result of exploratory drilling at Hawkeye-1 exploration well within Service Contract 55, Offshore Palawan which started July 31. “The drilling program has been executed smoothly, ahead of schedule and ahead of budget,” Otto Energy said in a statement released August 17.

“The Hawkeye-1 exploration well has proven the existence of hydrocarbons in SC55. The hydrocarbon size discovered is however at the very low end of expectations and is not economic to develop,” Otto’s Managing Director and CEO Matthew Allen said.

Otto Energy said Hawkeye-1 will now be plugged and abandoned.

Australian firm Otto Energy is the operator of Service Contract 55. Otto Energy Investments Ltd holds 33.18% stake in Service Contract 55, Otto Energy Philippines Inc. with 35.00%, Century Red Pte Ltd with 15.00%, Palawan55 Exploration and Production Company with 6.82%, and Pryce Gases Inc with 10.00%.

“Whilst the result at Hawkeye is disappointing, Otto is a well-funded explorer with high impact exploration activity in the coming twelve months,” Allen added.

Maersk Venturer ultra deep-water drill vessel was utilized in exploring the Hawkeye-1 well.