by Lenie Lectura – December 22, 2015
from Business Mirror
OTTO Energy Investments Ltd. is seeking a two-year moratorium under Service Contract (SC) 55 from the Department of Energy (DOE).
SC 55 covers southwest Palawan. Otto, operator of SC 55, holds 68.18 percent in the SC 55 consortium; PNOC-Exploration Corp. (PNOC-EC) 15 percent; TransAsia’s Palawan55 Exploration and Production Corp. (Palawan55) 6.82 percent; and Pryce Gases Inc. with 10 percent.
TransAsia, in a disclosure to the stock exchange on Tuesday, said Otto had informed the members of the consortium about this development.
Otto said in August the potential reserves in the Hawkeye-1 exploration well within SC 55 are not economically viable.
“Hawkeye-1 will now be plugged and abandoned,” Otto said earlier, citing the existence of hydrocarbons.
According to TransAsia, the SC 55 consortium fulfilled the work obligation under the current exploration subphase by drilling the Hawkeye-1 exploratory well in August this year.
“Although the well did not encounter gas in commercial quantities, it proved the presence of an active petroleum system in the contract area which hosts Cinco and other several other prospects and leads,” TransAsia said.