Update on farm-down of Service Contract 51, Offshore Visayas, Philippines
Otto Energy Ltd (ASX: OEL) is pleased to announce that it has today received the contribution of US$1.5m from SWAN Oil and Gas Ltd towards the drilling of the Duhat-1 well in San Isidro, Onshore Leyte in the Philippines.
The agreement has been approved by the SC51 Joint Venture Partners and is currently awaiting Philippine Department of Energy approval.
Otto also provides the following clarification to its release of 18 January 2011 in regards to the farm-down. It should have stated that, among the key terms of the agreement, the SC51 Joint Operating Agreement and Farm-in Agreement have also been amended to allow the Joint Venture Parties, upon their completion of the Duhat-1 onshore well, the option to drill the offshore Argao-1 well in the southern part of the block or a second onshore well in the north.
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