Shares in Otto Energy Limited (ASX:OEL)
have gained after securing a transfer of interest and operatorship in the Philippines from BHP Billiton Limited (ASX:BHP)
The oil and gas explorer says its interest in the SC55 will rise to 93.18 per cent after receiving the green light from the Philippines Department of Energy.
BHP Billiton will pay Otto Energy $US3 million to terminate an exploration joint venture and an extra $US24.5 million upon completion of drilling the first exploration well.
Otto Energy’s CEO Matthew Allen says the reassignment of equity and operatorship is an important step in progressing the company’s exploration in the high impact area. Otto Energy hopes to secure a new partner for SC55 by mid-2014.
Shares in Otto Energy have gained 10 per cent in morning trade to $0.099.
Otto Energy reported a net profit of $10.2 million in the 2013 financial year.